2) The second approach is based on the value on FCFE. You can estimate FCFE using the spreadsheet model that I put up in Blackboard. You should compute the FCFE for the firm for 5 to 10 years. Using the FCFE data, you then need to estimate the growth rate (g) for FCFE. To accomplish this, you need to use the regression approach where you regress Ln(FCFE) versus time using 5 to 10 years of annual data. The coefficient on the time variable is an estimate of the growth rate in FCFE. Now use the constant growth model replacing dividends with FCFE and using the growth rate in FCFE rather than the growth rate for EPS. Use the same k as in dividend approach. 2) The second approach is based on the value on FCFE. You can estimate FCFE using the spreadsheet model that I put up in Blackboard. You should compute the FCFE for the firm for 5 to 10 years. Using the FCFE data, you then need to estimate the growth rate (g) for FCFE. To accomplish this, you need to use the regression approach where you regress Ln(FCFE) versus time using 5 to 10 years of annual data. The coefficient on the time variable is an estimate of the growth rate in FCFE. Now use the constant growth model replacing dividends with FCFE and using the growth rate in FCFE rather than the growth rate for EPS. Use the same k as in dividend approach