Use the following data to calculate your stock value.

Note the following:

ROE = NI / Total equity

Payout ratio = total cash dividends / NI

There are 10million shares outstanding.

T-bill rate is 3.0%, S&P500 mkt return was 10.00%, and beta of this company is 1.5.

equity beta of this company is 1.5.

FCF (Free cash flow) = EBIT * (1-tax rate) + Depreciation NCS change in NWC

assume that the market value of debt is equal to the book value of debt.

Balance sheet (in millions) of 2021 and 2022
	2021		2022			2021		2022
Current Assets	380		450		Current liabilities	150		200
Fixed Asset	600		500		Fixed Debt	380		250
					Total equity	450		500
Total Asset	980		950		Total liabilities+equity	980		950

Income Statement (in millions) of 2022
Revenue	500
all expenses	-200
EBIT	300
Interest expense	-100
EBT	200
Tax	-90
NI =	110

Assume this company does not pay any dividend. And further assume that the Free cash flow and the earnings will grow at the constant rate of 4.5%.

Question #1. With this assumption, What should be the stock value per share using the Free Cash Flow (FCF) model?

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- Formulas for the first question:

FCF = EBIT(1 Tax Rate) + Depreciation (Net) Capital Spending Change in Net Working Capital