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Eta Edibles Had Free Cash Flow to Equity, Required Return

Question 31

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.  Most recent FCFE Required return on equity Long-term growth rate100090%4%\begin{array}{l}\begin{array} { l } \text { Most recent FCFE}\\\text { Required return on}\\\text { equity}\\\text { Long-term growth rate}\\\end{array}\begin{array} { l } 1000\\90 \%\\\\4 \%\\\end{array}\end{array}


 
 


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

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