You have been asked to determine the value of ABCs stock using Free Cash Flow to Equity model. You believe that ABCs FCFE will grow at 27% for two years and 13% thereafter. Capital expenditures, depreciation and working capital are all expected to increase proportionately with FCFE. Assuming the increase of net working capital is 41 million USD from 2016 to 2017, and required rate of return on equity is 14%, common share outstanding in 2016 and 2017 are 84 million shares. Based on financial statement provided:

1) Calculate the amount of FCFE per share for the year 2017. 2) Calculate intrinsic value of a share of ABCs stock based on two-stage FCFE model.

Financial Statement at Fiscal Years End (million, USD) 2016 2017 474 598 20 23 460 368 Income Statement Revenue Depreciation Other Operating cost Income before taxes Taxes Net income Dividend 86 115 35 26 60 18 80 24 201 474 675 326 489 815 57 Balance Sheet Current Asset Net property, plant and equipment Total Asset Current Liability Long term debt Total Liability Shareholder's equity Total Liabilities and equity Capital Expenditures 0 141 0 141 57 618 674 675 815 38 34