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A company expects FCFF in the coming year of 400 million Canadian dollars, and expects FCFF to grow forever at a rate of 3 percent.

A company expects FCFF in the coming year of 400 million Canadian dollars, and expects FCFF to grow forever at a rate of 3 percent. The company maintains an all-equity capital structure, and the required rate of return on equity is 8 percent. Firm has 100 million outstanding common shares and they are currently trading in the market for $70 per share. Using the information provided, you believe the company's share is:

A. Fairly-Valued

B. Under-Valued

C. Over-Valued

D. Insufficient Information.

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