Zeta Technologies Has the Following Projections A) $21,165
B) $23,282
C) $25,610
D) $28,171
E) $30,988

Multiple Choice

Zeta Technologies has the following projections. It has no non-operating assets. Calculate Zeta's intrinsic value of equity using the FCFE model.

$\begin{array}{l}\begin{array} { l } \\ \\\text { FCFE }\\\text { Total debt }\\\text {Interest rate on debt }\\\text {Tax rate}\\\text { Long-term growth rate}\\\text { Required return on equity }\\\end{array}\begin{array} { l } \text { Cunent }\\\text { Year } & \text { Year 1 } & \text { Year 1 } & \text { Year 3 } \\NA& 1,000 & 1,200 & 1,248 \\3,000 & 3,900 & 4,290 & 4,462 \\6 \% & 6 \% & 6 \% & 6 \% \\25 \% & 25 \% & 25 \% & 25 \%\\4\%\\9\%\end{array}\end{array}$


 
 

A) $21,165
B) $23,282
C) $25,610
D) $28,171
E) $30,988