Question $11(10$ points$)$

Under CVM$,$ the share price is calculated as $\frac{FC{F}_1}{\text{W}\text{A}\text{C}\text{C}-g_{FCF}}$

$$ True

$$ False

Question $12(10$ points$)$

You must estimate the intrinsic value of Noe Technologies' stock. The end$-$of$-$year free cash flow $(FC{F}_1)$ is expected to be $$24\mathrm{.}50$ million, and it is expected to grow at a constant rate of $7\mathrm{.}0\%$ a year thereafter. The company's WACC is $10\mathrm{.}0\%,$ it has $$125\mathrm{.}0$ million of long$-$term debt plus preferred stock outstanding, and there are $15\mathrm{.}0$ million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock?

a $,$$$38\mathrm{.}27$

b $$46\mathrm{.}11$

c $$34\mathrm{.}58$

d $$40\mathrm{.}12$

e $,$$$47\mathrm{.}96$