什么是normalized FCFE?

NO.PZ2023032701000103 问题如下 Using the capitalizecash flow metho(CCM), calculate the fair market value of 100 percent of the equity of a hypotheticcompany, given the following information:• Current year’s reportefree cash flow to equity = $1,400,000• Current year’s normalizefree cash flow to equity = $1,800,000• Long-term interest bearing = $2,000,000• Weighteaverage cost of capit= 15 percent• Equity scount rate = 18 percent• Long-term growth rate of FCFE = 5.5 percent A.15.19 million B.16.87 million C.14.32 million There are FCFF anFCFE variations of the CCM. In this problem, the ta permit the application of just the FCFE variation. Accorng to thvariation, the estimatevalue of equity equals the normalizefree cash flow to equity estimate for next periovithe capitalization rate for equity. The capitalization rate is the requirerate of return for equity less the long-term growth rate in free cash flow to equity. Using the current $1.8 million of free cash flow to equity, the 18 percent equity scount rate, anthe long-term growth rate of 5.5 percent yiel a value incation of [($1.8 million)(1.055)]/(0.18 – 0.055) = $1.899 million/0.125 = $15.19 million. 如何得知题目中给的Equity scount rate = 18 percent就是re？