A company is considering to start a new business which will generate $400 per year in the next 3 years. Assume that there is no tax and all debts are risk-free. The risk-free interest rate is 6% and the market return is 12%. Find the value of the business under each of the following situations: (a) A comparison firm is identified. This firm has an equity beta 1.2 and D/E=0.6. (b) A comparison firm is identified. This firm has a dividend yield 4.2% and analysts' forecast of its earning growth is 9%. The D/E ratio of this firm is 0.8. (c) A comparison firm is identified. The firm has a dividend yield 3.6%, plowback ratio 30%, book return on equity 20%, and is purely equity financed. (d) There is no directly comparable firm. However, two firms are found to have divisions running similar business: Assume that the other businesses of the two firms are similar