Zero had a FCFE of $4.5M last year and has 2.25M shares outstanding.Zero's required return on equity is 10%, and WACC is 8.2%.If FCFE is expected to grow at 8% forever, the intrinsic value of Zero's shares is

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The correct answer is A. The intrinsic value of Zero's shares is $108.00. This is calculated using the Gordon Growth Model, which is:Intrinsic Value = FCFE / (r - g)where:FCFE = Free Cash Flow to Equityr = Required return on equityg = Growth rate of FCFEIn this case, FCFE = $4.5M, r = 10%, and g = 8%. Plugging these values into the formula, we get:Intrinsic Value = $4.5M / (0.10 - 0.08) = $108.00

Zero Had a FCFE of $4