ABC is considering the purchase of a significant stake in XYZ. Although ABC has stable production output, the company is located in a developing country with an uncertain economic environment. Therefore, Xiaomi has decided to approach the valuation of MMX from free cash flow model using real growth rates. In real rate analysis, ABC uses a modified build-up method for calculating the required real return i.e. remnred real return = country real rate + industry adjustment + company adjustment. An analyst with ABC estimates the following information for XYZ: Domestic inflation rate: 8.738%, Nominal growth rate: 12%, Real country return: 3%, Industry adjustment: 3% and Company adjustment: 2%. Additionally, the analyst reports information from MMX's financial statements for the year just ended: Selected financial Statement Information Investment in 6ind capital Investment in vaadcing capital 3,200,000 400,000 New bonowing s 2,400,030 Debt repayment 2,000,000 Depredation 3,500,000 Interest Eapense 5,000.000 Net Income 7,000,000 TaxRate 34% Dividends

1.What is the FCFE for XYZ

2.What is the FCFF for XYZ