4a. Samuel Lee, a financial analyst, is examining the financing information of Apple and Banana companies. Except their capital structures, both companies are identical in all respects. The financial details of the two companies are summarized as follows:- $550,000 Apple Company (levered) Earnings before interest and tax Interest Debt (Market Value) Equity (Market Value) $86,000 $2,200,000 $2,652,000 Banana Company (unlevered) Earnings before interest and tax $550,000 Equity (Market Value) $3,500,000 Ignore taxes and assume that both Apple and Banana companies will distribute all their net income to shareholders and the streams of their annual earnings are in perpetuity. Samuel has devised two investment plans. Assume that Samuel could borrow at an annual rate of 7%. Plan A: invest 6% of the equity of Apple company Plan B: invest 6% of the equity of Banana company by borrowing so that his initial investment cost of the two plans are identical. i) What are the year-end cash flow from the investment in Apple company and Banana company respectively? ii) Will the process continue forever? Why