Siri had a FCFE of $1.6M last year and has 3.2M shares outstanding. Siri's required return on equity is 12%, and WACC is 9.8%. If FCFE is expected to grow at 9% forever, the intrinsic value of Siri's shares is
A) $68.13.
B) $18.17.
C) $26.35.
D) $14.76.
E) None of the options are correct.
Correct Answer:
Verified
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