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 are

Name: 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 are
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$1.6M/3.2M = $0.50 FCFE per share; .50 × 1.09 = .545; .545/(.12 - .09) = 18.17.

Siri Had a FCFE of $1