SGA Consulting had a FCFE of $3.2M last year and has 3.2M shares outstanding.SGA's required return on equity is 13% and WACC is 11.5%.If FCFE is expected to grow at 8.5% forever, the intrinsic value of SGA's shares are
A) $21.60.
B) $26.56.
C) $244.42.
D) $24.11.
Correct Answer:
Verified
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