See Candy had a FCFE of $6.1M last year and has 2.32M shares outstanding. See's required return on equity is 10.6%, and WACC is 9.3%. If FCFE is expected to grow at 6.5% forever, the intrinsic value of See's shares is

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The intrinsic value of See's shares can be calculated using the Gordon Growth Model for Free Cash Flow to Equity (FCFE), which is given by the formula: $$ \text{Value per share} = \frac{\text{FCFE} \times (1 + g)}{r - g} $$ where $ \text{FCFE} $ is the Free Cash Flow to Equity, $ g $ is the growth rate of FCFE, and $ r $ is the required return on equity. Plugging in the given values: $$ \text{Value per share} = \frac{6.1M \times (1 + 0.065)}{0.106 - 0.065} $$ $$ \text{Value per share} = \frac{6.1M \times 1.065}{0.041} $$ $$ \text{Value per share} = \frac{6.4965M}{0.041} $$ $$ \text{Value per share} = 158.4512M $$ To find the value per share, divide by the number of shares outstanding: $$ \text{Value per share} = \frac{158.4512M}{2.32M} $$ $$ \text{Value per share} = 68.30 $$ Therefore, the intrinsic value of See's shares is $68.30, which corresponds to choice B.

See Candy Had a FCFE of $6