Question $517$ Points The following table lists the Income statement and Balance sheet for First American Furniture Company $\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}\backslash$hline Income Statement & $2020$ & $2021\backslash \backslash \backslash$hline Revenue & $516$ & $630\backslash \backslash \backslash$hline Depreciation & $30$ & $35\backslash \backslash \backslash$hline Other operating costs & $400$ & $480\backslash \backslash \backslash$hline Income before taxes & $86$ & $115\backslash \backslash \backslash$hline Taxes & $30$ & $44\backslash \backslash \backslash$hline Net income & $56$ & $71\backslash \backslash \backslash$hline Dividends & $20$ & $26\backslash \backslash \backslash$hline Earnings per share & $0\mathrm{.}56$ & $0\mathrm{.}71\backslash \backslash \backslash$hline Dividend per share & $0\mathrm{.}2$ & $0\mathrm{.}26\backslash \backslash \backslash$hline Common shares outstanding $($millions$)$ & $100$ & $100\backslash \backslash \backslash$hline $\backslash$end$\{$tabular$\}\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline Balance Sheet & $2020$ & $2021\backslash \backslash$

$\backslash$hline Current assets & $350$ & $420\backslash \backslash$

$\backslash$hline Net property, plant, and equipment & $500$ & $520\backslash \backslash$

$\backslash$hline Total assets & $850$ & $940\backslash \backslash$

$\backslash$hline Current liabilities & $130$ & $150\backslash \backslash$

$\backslash$hline Long$-$term debt & $50$ & $80\backslash \backslash$

$\backslash$hline Total liabilities & $180$ & $230\backslash \backslash$

$\backslash$hline Shareholders' equity & $670$ & $710\backslash \backslash$

$\backslash$hline Total liabilities and equity & $850$ & $940\backslash \backslash$

$\backslash$hline Capital expenditures & $45$ & $50\backslash \backslash$

$\backslash$hline Net Working Capital & $220$ & $270\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

You are a financial analyst at RBC$.$ 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 $\backslash (35\backslash \%\backslash )$ for three years and $\backslash (11\backslash \%\backslash )$ 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 $16\backslash \%.$

a$.$ Calculate the amount of FCFE per share for the year $2021.$Blank $1($sample answer: $\backslash$$$5\mathrm{.}15)$

b$.$ Calculate Projected $2024$ terminal value per share based on constant growth of $\backslash (11\backslash \%\backslash )$ Blank $2($sample answer: $\backslash (\backslash$$ $25\mathrm{.}15\backslash ))$

c$.$ Calculate the current value of a share of the stock based on the two$-$stage FCFE model.Blank $3($sample answer: $\backslash (\backslash$$ $25\mathrm{.}15\backslash ))$