Eta Edibles had free cash flow to equity, required return, and long-term growth rate as indicated below. Eta has no non-operating assets. Calculate Eta's intrinsic value of equity using the FCFE model. $\begin{array}{l}
\begin{array} { l }
\text { Most recent FCFE}\
\text { Required return on}\
\text { equity}\
\text { Long-term growth rate}\
\end{array}
\begin{array} { l }
1000\
90 \%\
\
4 \%\
\end{array}
\end{array}$

Question

Eta Edibles had free cash flow to equity, required return, and long-term growth rate as indicated below. Eta has no non-operating assets. Calculate Eta's intrinsic value of equity using the FCFE model. $\begin{array}{l}
\begin{array} { l } 
\text { Most recent FCFE}\
\text { Required return on}\
\text { equity}\
\text { Long-term growth rate}\
\end{array}
\begin{array} { l } 
1000\
90 \%\
\
4 \%\
\end{array}
\end{array}$

Quizplus · Accepted Answer

Calculations
HVFCFE  $ \quad $$ \quad $$ 20.800 $  $ \quad $$ \quad $  $ = $ Constant growth formula $ = $ FCFE $ x(1+g) /(1-g) $

Eta Edibles Had Free Cash Flow to Equity, Required Return