3. [18 points] DeFi Inc. has the following information on the current and future performance and balances. Year 0 denotes the current year-end where all the numbers are just realized. Year 1 is the first year-end with projected numbers. The corporate tax rate is 15%. (a) Suppose the current assets and current liability of Year 0 remain the same as the year before. What is free cash flow to firm (FCFF) in Year 0 ? (6 points) (b) Calculate the net borrowing in Year 3 and provide the economic meaning of your answer. (4 points) (c) Suppose the FCFF is $572 at Year 1, and $1,888 at Year 2. It starts to grow at a constant rate of 3% after Year 2 perpetually. The cost of equity is 10% and the weighted average cost of capital is 7%. Calculate the market value of the equity of the firm today (i.e., at Year 0 ). (8 points)