Question 2 From the following data calculate the per share value of equity using single stage free cash flow to equity (FCFE) model. Expected FCFE after one year $ 100 M Share holder required rate of 10% return Number of share outstanding 2M Expected long term growth rate 646 Market value of debt $ 50 M $ 1,250 $ 1,300 $ 1,325 $ 1,225 O SS company forecasted high growth in first three years after that there is constant growth rate of 6% for remaining period. SS company forecasted next three years as: FCFF for year 1 FCFF for year 2 FCFF for year 3 $ 1,000 $ 1,200 $1,500 If WACC is 8%, cost of equity is 10%, market value of debt is $11,000. Calculate the value of equity using two stage FCFF model if after three $ 32,892.56 $ 55,255.14 $ 66,255.14 $ 21,892.56