Steve Bono is valuing the equity of Petroleo Brasileiro (nYSe: PBr), commonly known as Petrobras, in early 2013 (before the release of 2012 financial results) by using the single-stage (constant-growth) FCFE model.
Estimated FCFE for 2012 is 1.05 Brazilian reais (Brl). Bono's best estimates of input values for the analysis are as follows:
The FCFE growth rate is 6.0 percent.
The risk-free rate is 5.2 percent.
The equity risk premium is 5.5 percent.
Beta is 1.2.
What is the equity value per share?