b) 6) year away. Other information for the rm is as follows: Cost of Debt, R3 = 11%; Cost of Equity, R3 = 20%; Tax Rate = 35%; and the rm uses 25% debt and 75% equity in its capital structure. What is the appropriate discount rate at which the free cash ows of the rm should be discounted to compute this rm's value? What is the value of the rm? Consider a rm with free cash ows to equity (FCFE) of $100 million, $160 million, and mnn _- 1111 -_- ---1 ----_- I'-_- ----_-__ 1 -_ J '1 _-___-_-L' ,,,,,, _--- AJ- -1_ L1-- I'I. -L I'. -- ---1