Using the FCFE model, calculate the price per share of Finito Inc. based on the following information:

• EPS for the year just ended (20X1) = $4.00
• EPS growth is expected to be 20% in 20X2, 12% in 20X3, 8% in 20X4, and then reach a longrun stable rate
• of 6% in 20X5 and thereafter.
• Capital spending (net of depreciation) per share is expected to be $2.00 in 20X2, $2.24 in 20X3, $2.42 in
• 20X4, and then grow at a 6% rate thereafter.
• Working capital investment equals 40% of the capital spending.
• The company uses 80% debt financing to cover its required investment in fixed and working capital.
• The company's beta is 1.25, the riskfree rate is 5%, and the (equity) market risk premium is 6%.