Question Completion Status: The following table lists the Income statement and Balance sheet for First American Furniture Company Income 2017 2018 Balance 2017 2018 Statement Sheet Revenue $516 $630 Current assets $350 $420 520 Depreciation 30 500 35 Prop, plant, & Equip 480 -400 Total assets $850 $940 Other operating costs Income before taxes 130 150 86 115 Current liabilities Long term debt 50 80 30 40 Taxes 56 Total liabilities S180 $230 75 Net income $490 $480 20 26 Dividends Shareholders equity Total Land equity $850 5940 Earnings per Share 50 58 95 1 Dividonds 20 26 5490 5480 equity Eamnings per share $0.56 $0.95 Total L and equity $850 $940 $0.20 $0.26 Capital expenditures 45 50 Dividend per share # of Common shares 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 40% for three years and 12these 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 0.40 sample answer $5 159 Calculate Projected 2021 terminal value based on constant growth of 12% samo 125 15 Calculate the current value of a share of the stock based on the two-stage FCFE model answer $25 15) Click Submit to complete this assessment 11