A company has a Ba = 1 Rm = 10% Rf = 5% and a tax rate of 35%. In year zero, its operating assets are one billion; its EBIT for year 1 will be 240 million, and this will be maintained in perpetuity. From the financial point of view, the company is like a perpetuity with g=0. Its book value of equity is 100 million, and its financial debt is 900 million, for which it pays 15% before taxes. According to a valuation expert, its WACC is 12.09302 and its EV is 1290.

According to this information:

1. Calculate the FCFF and FCFE.
2. If we consider the expert's calculations as fair, what is the equity value (EqV) of the company.
3. Build the balance sheet at the end of year 1 and calculate ROE.
4. Does the experts calculation on WACC and EV seem correct to you? Give a quantitative answer and comment briefly.
5. Suppose that shareholders have 900 million, but cannot find anywhere to invest, do you thin that cancelling the company's debt would generate, or destroy, value for these shareholders? How much value would be involved? Give your answer numerically and comment briefly.