18. The free cash flow to the firm is reported as $500 million. The interest expense to the firm is $20 million. If the tax rate is 30% and the net debt of the firm increased by $50 million, what is the approximate market value of the firm if the FCFE grows at 5% and the cost of equity is 12%? (a) $8,040 billion (b) $9,423 billion (c) $7,091 billion (d) $6,184 billion 19. ART has come out with a new and improved product. As a result, the firm projects an ROE of 15%, and it will maintain a plowback ratio of 0.25. Its earnings this coming year will be $4 per share. Investors expect a 12% rate of return on the stock. What is the present value of growth opportunities for ART? (a) $5.56 (b) $2.89 (c) $3.03 (d) $36.36 bonds