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The Pekay Company Has an FCFE of $800

Question 35

Multiple Choice

The Pekay Company has an FCFE of $800. The FCFE is expected to grow by 7 percent next year. The cost of capital is 7 percent, and the level of debt is $4000. The number of shares outstanding is 700. Calculate the firm's share price.


A) $44.25
B) $65.12
C) $38.19
D) $40.76
E) $50.56

Correct Answer:

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