Answer each of the following three cases 1. XX firm is a full-service truck leasing, maintenance, and rental firm with operations in North America and Europe. The following are selected numbers from the financial statements for 1992 and 1993 (in millions). Revenues (Less) Operating Expenses (Less) Depreciation EBIT (Less) Interest Expenses (Less) Taxes -Net Income Working Capital Total Debt 1992 $5,192.0 ($3,678.5) ($573.5) $940.0 ($170.0) ($652.1) $117.9 $92.0 $2.000 mil 1993 $5,400.0 ($3848.0) ($580.0) $972.0 ($172.0) ($670.0 $130.0 $370.0> $2.200 mil The firm had capital expenditures of $800 million in 1992 and $850 million in 1993. The working capital in 1991 was $34.8 million, and the total debt outstanding in 1991 was $1.75 billion. There were 77 million shares outstanding, trading at $29 per share. A. Estimate the cash flows to equity in 1992 and 1993. B. Estimate the cash flows to the firm in 1992 and 1993. C. Assuming that revenues and all expenses including depreciation and capital expenditures) increase 6%, and that working capital remains unchanged in 1994, estimate the projected cash flows to equity and the firm in 1994. (The firm is assumed to be at its optimal financial leverage.) D. How would your answer in (c) change if the firm planned to increase its debt ratio in 1994 by financing 75% of its capital expenditures (net of depreciation) with new debt issues