See Candy had a FCFE of $6.1M last year and has 2.32M shares outstanding. See's required return on equity is 10.6%, and WACC is 9.3%. If FCFE is expected to grow at 6.5% forever, the intrinsic value of See's shares is

A) $108.00.
B) $68.30.
C) $26.35.
D) $14.76.

The intrinsic value of See's shares can be calculated using the Gordon Growth Model for Free Cash Flow to Equity (FCFE), which is given by the formula: $$\text{Value per share}=\frac{\text{FCFE}\times (1+g)}{r-g}$$ where $\text{FCFE}$ is the Free Cash Flow to Equity, $g$ is the growth rate of FCFE, and $r$ is the required return on equity. Plugging in the given values: $$\text{Value per share}=\frac{6.1M\times (1+0.065)}{0.106-0.065}$$ $$\text{Value per share}=\frac{6.1M\times 1.065}{0.041}$$ $$\text{Value per share}=\frac{6.4965M}{0.041}$$ $$\text{Value per share}=158.4512M$$ To find the value per share, divide by the number of shares outstanding: $$\text{Value per share}=\frac{158.4512M}{2.32M}$$ $$\text{Value per share}=68.30$$ Therefore, the intrinsic value of See's shares is $68.30, which corresponds to choice B.