The following table is American Bank Income Statement Revenue owing table lists the Income statement and Balance she 2017 5600 Depreciation Other operating costs Income before taxes 2018 $690 35 30 400 $170 480 Taxes $175 catement and Balance sheet for First Balance Sheet 2017 2018 Current assets $350 5500 Prop, plant, & Equip 500 520 Total assets $50 $1.020 Current abilities Long-term debt 70 Total liabilities $220 Shareholders' equity $800 Total L and equity $1,020 Capital expenditures 55 Net income Dividends Earnings per share Dividend per share # of Common shares $140 20 $0.56 $0.20 100 $135 26 $0.95 $0.26 100 $130 $720 S850 45 Fou are a financial analyst at RRC 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 25% 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%. a. Calculate the amount of FCFE per share for the year 2018. b. Calculate Projected 2021 terminal value based on constant growth of 10% c. Calculate the current value of a share of the stock based on the two-stage FCFE model