Grumman Corporation, a producer of military aircraft, reported net income of $120 million in 1993 , after paying interest expenses of $19 million. The depreciation allowance in 1993 was $77 million, while capital expenditures amounted to $80 million in the same year. Working capital increased by $15 million in 1993 . (The tax rate is 40%.) Grumman finances 10% of its net capital investment and working capital needs using debt. The free cash flows to equity are expected to grow 10% a year from 1994 to 1998 , and 6% a year after that. The stock had a beta of 0.80 , and this is expected to remain unchanged. The treasury bond rate is 7%. The market risk premium is 5.5%. A. What is the FCFE of 1993 B. Estimate the Price/FCFE ratio for the firm using the two stage format. (2 growth rate)