Zero had a FCFE of $$4\mathrm{.}5$ mil last year and has $2\mathrm{.}25$ mil shares outstanding. Zero's required

return on equity is $10\%,$ and WACC is $8\mathrm{.}2\%.$ If FCFE is expected to grow at $8\%$ forever, the

intrinsic value of Zero's shares is:

price per share $100$

$100$ price per share $150$

$150$ price per share $200$

$200$ price per share

Question $20$

$1$ pts

Salted Chips Company is expected to have EPS in the coming year of $$2\mathrm{.}50.$ The expected

ROE is $12\mathrm{.}5\%.$ An appropriate required return on the stock is $11\%.$ If the firm has a retention

ratio of $70\%,$ the sustainable growth rate of dividends should be:

$g6\mathrm{.}0\%$

$8\mathrm{.}0\%7\mathrm{.}0\%$

$8\mathrm{.}0\%6\mathrm{.}0\%$

$7\mathrm{.}0\%$

$8\mathrm{.}0\%$