L Inc, a household product manufacturer, reported earnings per share of $3.20 in 2013, and paid dividends per share of $1.70 in that year. The firm reported depreciation of $315 million in 2013, and capital expenditures of $475 million. (There were 160 million shares outstanding, trading at $51 per share.) This ratio of capital expenditures to depreciation is expected to be maintained in the long term. The working capital needs are negligible. Larbi Inc had debt outstanding of $1.6 billion, and intends to maintain its current financing mix (of debt and equity) to finance future investment needs. The firm is in steady state and earnings are expected to grow 7% a year. The stock had a beta of 1.05. The Treasury bond rate is 6.25%.

Estimate the value of the equity per share using the FCFE Model.