Theta Therapeutics Has the Following Information and Projections A) $14,156
B) $15,572
C) $17,129
D) $18,842
E) $20,726

Multiple Choice

Theta Therapeutics has the following information and projections. Use the FCFE model to calculate the intrinsic value of Theta's equity. $\begin{array}{l}\begin{array} { l } \\ \\\text { EBIT (operating profit) }\\\text { Operating assets}\\\text { Operating liabilities}\\\text { Total Debt}\\\text { Tax rate}\\\text { Interest rate on debt}\\\text { long-term growth rate}\\\text { Required return on equity}\\\end{array}\begin{array} { l } \text { Cunent }\\\text { Year } && \text { Year 1 } & \text { Year 2 } & \text { Year } 3 \\&\text { NA } & 1,000 & 1,100 & 1,200 \\&1,200 & 1,300 & 1,500 & 1,600 \\&300 & 300 & 400 & 500 \\&1,000 & 900 & 1,100 & 1,200 \\&\text { NA } & 25 \% & 25 \% & 25 \% \\&\text { NA } & 6 \% & 6 \% & 6 \%\\4\%\\9\%\end{array}\end{array}$


 

A) $14,156
B) $15,572
C) $17,129
D) $18,842
E) $20,726