31-Oct-13 GHC million 350 600 850 1,450 2.800 (800) 2,000 3,800 31-Oct-14 GHC million 420 750 960 2,130 3,000 (1,000) 2,000 4,130 Assets Current assets Cash and Cash equivalents Accounts receivable Inventory Total Current assets Gross Non-Current assets Accumulated depreciation Net Non-Current assets Total assets Liabilities and shareholders' equity Current liabilities Accounts payable Notes payable Accrued taxes and expenses Total current liabilities Long term debt Total liabilities Equity capital Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 300 320 80 700 1,950 2,650 350 800 1,150 3,800 330 400 90 820 1,800 2,620 350 1.160 1,510 4,130 Income statement (GHC million) Total revenues Operating costs and expenses Depreciation Earnings before interest and taxes Interest expense Income before tax Taxes @ 40% Net Income Dividends Addition to retained earnings 31-Oct-14 2,500 1,300 200 1,000 150 850 340 510 150 360 Given that the firm's cashflows will grow at 8% for the next two years and 5% thereafter till perpetuity and the firm has a cost of equity of 15% and a weighted average cost of capital of 10%, find (1) The free cashflow to firm and the total market value of the firm The free cashflow to equity and the total market value of the firm's equity