Exercise 2 (Exam Fall 2018) You have been provided the following information on CEL Inc, a manufacturer of highend stereo systems. In the most recent year, which was a bad one, the company made only $ 40 million in net income. It expects next year to be more normal. The book value of equity at the company is $ 1 billion, and the average return on equity over the previous 10 years (assumed to be a normal period) was 10%. The company expects to make $ 80 million in new capital expenditures next year. It expects depreciation, which was $ 60 million this year, to grow 10% next year. The company had revenues of $ 1.5 billion this year, and it maintained a non-cash working capital investment of 10% of revenues. It expects revenues to increase 20% next year and working capital to decline to 9.5% of revenues. The firm expects to maintain its existing debt policy in market value terms). The market value of equity is $ 1.5 billion and the book value of equity is 500 million. The debt outstanding (in both book and market terms) is $ 500 million. Estimate the FCFE next year