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A company's most recent free cash flow to equity was $130 and is expected to grow at 3% thereafter

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A company's most recent free cash flow to equity was $130 and is expected to grow at 3% thereafter. The company's cost of equity is 124. Its WACC 18 741% What is its current intrinsic value? Round your answer to the nearest dollar 7.

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According to the FCFE valuation model,

Intrinsic value = FCFE at 0(1+g)/Ke-g

Intrinsic value = $130(1.03)/0.12-0.03

Intrinsic value = $1,488

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