Assume the following five years of pro forma expected earnings for XYZ company (all in thousands):
Year CFO After-tax Interest Net Change in Fixed Capital
2017E 2000 200 600
2018E 1000 250 (150)
2019E 2500 350 250
2020E 3000 300 1,000
2021E 2800 100 (100)
Assume that FCFF will grow at a constant rate of 5% after FY2021, and a WACC of 15%. Also, assume the company currently holds debt with a market value of $2.5m and 100m shares of stock outstanding. Use a two-period FCFF model to estimate the stock's intrinsic value.