The following table lists the Income statement and Balance sheet for First American Furniture Company

Income Statement	2017	2018		Balance Sheet		2017	2018
Revenue	$516	$630		Current assets		$350	$420
Depreciation	30	35		Prop, plant, & Equip.		500	520
Other operating costs	400	480		Total assets		$850	$940
Income before taxes	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		Shareholders equity		$490	$480
Earnings per share	$0.56	$0.95		Total L and equity		$850	$940
Dividend per share	$0.20	$0.26		Capital expenditures		45	50
# 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 Banks stock using the Free Cash Flow to Equity (FCFE) model. You believe that the companys FCFE will grow at 40% for three years and 12% 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.[x](sample answer: $5.15) Calculate Projected 2021 terminal value based on constant growth of 12%[y] (sample answer: $25.15) Calculate the current value of a share of the stock based on the two-stage FCFE model.[z] (sample answer: $25.15)