Epsilon Consultants Has the Following Projected Free Cash Flows to Equity

Multiple Choice

Epsilon Consultants has the following projected free cash flows to equity and other information.It has no non-operating assets.Calculate Epsilon's intrinsic value of equity using the FCFE model. $$\begin{array} { l c c r } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\text { FCFE } & \$ 1,000 & \$ 1,200 & \$ 1,260 \\\text { Long-term FCFE growth } & 5 \% & & \\\text { Required return on } \\\text { equity }& 9 \% & &\end{array}$$ ? ?

A) $28,440
B) $31,284
C) $34,413
D) $37,854
E) $41,640