Question $12(1$ point$)$

Ridgeway Construction has recently reported FCFE of $2\mathrm{.}40$ Canadian dollars $($C$$)$ per share. The expected return on the market is $8\%,$ the risk$-$free rate is $4\%,$ and Ridgeway Construction has a beta of $1\mathrm{.}5.$ The expected growth rate of FCFE is $5\mathrm{.}5\%.$ Calculate the per share intrinsic value of Ridgeway Construction's stock.

$C$$$43\mathrm{.}64,\sqrt[\phantom{2}]{T}$

C $$41\mathrm{.}80$

C$$21\mathrm{.}81$

C $$45\mathrm{.}60$

Question $13(1$ point$)$

True or false? Raising the target debt ratio results in a lower FCFE.

True

False