Eta Edibles Had Free Cash Flow to Equity, Required Return

Multiple Choice

Eta Edibles had free cash flow to equity, required return, and long-term growth rate as indicated below.Eta has no non-operating assets.Calculate Eta's intrinsic value of equity using the FCFE model. $$\begin{array} { l r } \text { Most recent FCFE } & \$ 1000 \\\text { Required return on } & \\\text { equity } & 9 \% \\\text { Long-term growth rate } & 4 \%\end{array}$$

A) $18,909
B) $20,800
C) $22,880
D) $25,168
E) $27,685