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. $\begin{array} { l c c c } & \text { Year 1 } & \text { Year 2 } & \text { Year } 3 \\ \text { FCFE } & 1,000 & 1,200 & 1,260\\\text { Long-term FCFE growth }&5\%\\\text { Required return on equity }&9\% \end{array}$

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