9. Zango has EPS of $3.00 in 2012 and expects EPS to increase by 21 percent in 2013. EPS are expected to grow at a decreasing rate for the following five years, as shown in the following table.

	2013	2014	2015	2016	2017	2018
Growth Rate for EPS	21%	18%	15%	12%	9%	6%
Net Capital Expenditures per Year	$5.00	$ 5.00	$4.50	$4.00	$3.50	$1.50

In 2018, the growth rate will be 6 percent and is expected to stay at that rate thereafter. Net capital expenditures (capital expenditures minus depreciation) will be $5.00 per share in 2012 and then follow the pattern predicted in the table. In 2018, net capital expenditures are expected to be $1.50 and will then grow at 6 percent annually. The investment in working capital parallels the increase in net capital expenditures and is predicted to equal 25 percent of net capital expenditures each year. In 2018, investment in working capital will be $0.375 and is predicted to grow at 6 percent thereafter. Zango will use debt financing to fund 40 percent of net capital expenditures, and 40 percent of the investment in working capital. The required rate of return for Zango is 12 percent.

Estimate the value of a Zango share using a two-stage FCFE valuation approach.