A firm produces a perpetual annual free cash flow to equity of $1 billion. You believe the firm's stock return can be modeled using APT. There are only two factors you care about: the average temporature of the year, and the average market return of the year. You estimate that these two numbers are 75 and 12% respectively. You run the regression of historical firm stock returns on these two factors, and you got an intercept of 1%, beta to the first factor (temporature) of 0.002 and beta to the second factor (market return) of 1/3. What would be the fair value of equity for the firm? $5 billion $10 bilion $4 billion Hide hint for Question 20 Find the discount rate using APT, and then go from there