Question
Eta Edibles had free cash flow to equity, required return, and long-term growth rate as indicated below. Eta has no non-operating assets. Calculate Eta's intrinsic
Eta Edibles had free cash flow to equity, required return, and long-term growth rate as indicated below. Eta has no non-operating assets. Calculate Eta's intrinsic value of equity using the FCFE model.
| Most recent FCFE | 1000 |
| Required return on equity | 9% |
| Long-term growth rate | 4% |
| a. | $22,880 | |
| b. | $25,168 | |
| c. | $27,685 | |
| d. | $18,909 | |
| e. | $20,800 |
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An Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Roberts Brooks
7th Edition
0324321392, 9780324321395
