2. American Bank The following table lists the Income statement and Balance sheet for First Income Statement Revenue 2017 2018 Balance Sheet 2017 2018 Depreciation Se90 S600 ss00 Current assets $350 30 Other operating costs 520 Prop. plant, & Equip. 500 400 $1.020 Income before taxes 480 Ses0 Total assets 150 $170 80 $175 s Current labilties 70 50 Long-term debt Total liabilities 30 40 Net income $220 $130 $140 $135 Dividends $800 $720 20 26 Shareholders' equity $1,020 Eamings per share Dividend per share # of Common shares S850 Total L and equity Capital expendtures $0.56 $0.95 55 45 $0 20 $0.26 100 100 Pou arg a financial analyst at RBC. Using the data above, you want to determine the value of irst American Bank's stock using the Free Cash Flow to Equity (FCFE) model. You believe that the company's FCFE will grow at 25% for three years and 10% thereafter. Capital expenditures, depreciation, working capital, and net debt are all expected to increase proportionately with FCFE. The required rate of return on equity is 15%. a. Calculate the amount of FCFE per share for the year 2018. b. Calculate Projected 2021 terminal value based on constant growth of 10% c. Calculate the current value of a share of the stock based on the two-stage FCFE model