1. The Johnson Investment Fund (JIF), a private equity group, is evaluating an investment in ABC, Inc (the Company). They plan to take the Company private, improve the Companys operating efficiencies, and then bring it back public in two (2) years. The following information has been provided by JIF analysts who plan on calculating the Company's equity value using a Free Cash Flow to Equity Model. Assume the valuation date is January 1, 2021.

ABC Inc. (values in millions of USD, except percent and per share)
Investment horizon (years)	2		Marginal tax rate	21%
2021 Sales	300		cash	2,000
2022 Sales	330		Market value of debt	400
Expected net income margin	25%		Market value of equity	800
Terminal trailing PE multiple	15.0x		Historical debt ratio (dr)	33.33%
Depreciation and Amortization (% of sales)	5%		cost of debt	4.5%
Capex as a percent of sales	5%		cost of equity	25.0%
NWC as a percent of sales	2%		Shares outstanding	8

Using the FCFE model, estimate the equity value per share of ABC, Inc. common stock. Is the stock under- or over-valued in the market?