Income Statement 2017 2018 Balance Sheet rican Furniture Company 2018 2017 $516 $630 Current assets $350 $420 30 35 Revenue Depreciation Other operating costs Income before taxes Prop, plant, & Equip. 500 520 400 480 Total assets $850 $940 86 115 Current liabilities 130 150 Taxes 30 40 Long-term debt 50 80 Net income 56 75 Total liabilities $180 $230 Dividends 20 26 $490 $480 $0.56 $0.95 Shareholders' equity Total L and equity Capital expenditures $850 Earnings per share Dividend per share # of Common shares $940 $0.20 $0.26 45 50 100 100 You are a financial analyst at RBC. Using the data above, you want to determine the value of First American Bank's stock using the Free Cash Flow to Equity (FCFE) model. You believe that the company's FCFE will grow at 30% for three years and 10% thereafter Capital expenditures, depreciation, working capital, and net debt are all expected to increase proportionately with FCFE. The required rate of return on equity is 15% Calculate the amount of FCFE per share for the year 2018. Calculate Projected 2021 terminal value based on constant growth of 10% Calculate the current value of a share of the stock based on the two-stage FCFE model