Helen has been asked to use the DDM to determine the value of Sundanci, Inc. Helen anticipates that Sundanci's earnings and dividends will grow at 32% for 2 years and 13% thereafter. Calculate the current value of a share of Sundanci stock by using a two-stage DDM and the data from the following tables. Question 3 (Equity Valuation) To continue with Sundanci, Helen has been directed to determine the value of Sundanci's stock using the FCFE model. Helen believes that Sundanci's FCFE will grow at 27% for 2 years and 13% thereafter. Capital expenditures, depreciation and working capital are all expected to increase proportionately with FCFE. i. Calculate the amount of FCFE per share for the year 2016 using the data from the above table. ii. Calculate the current value of a share of Sundanci stock based on the two-stage FCFE model iii. Describe one limitation of the two-stage DDM model that is NOT addressed by using the two-stage FCFE model. To continue with Sundanci, Helen has been directed to determine the value of Sundanci's stock using the FCFE model. Helen believes that Sundanci's FCFE will grow at 27% for 2 years and 13% thereafter. Capital expenditures, depreciation and working capital are all expected to increase proportionately with FCFE. i. Calculate the amount of FCFE per share for the year 2016 using the data from the above table. ii. Calculate the current value of a share of Sundanci stock based on the two-stage FCFE model. iii. Describe one limitation of the two-stage DDM model that is NOT addressed by using the two-stage FCFE model. TABLE 13.12. Selected financial information Required rate of retum on equity Growth rate of industry Industry P/E ratio 14%13%26 Helen has been asked to use the DDM to determine the value of Sundanci, Inc. Helen anticipates that Sundanci's earnings and dividends will grow at 32% for 2 years and 13% thereafter. Calculate the current value of a share of Sundanci stock by using a two-stage DDM and the data from the following tables