Consider the following 4-year projections for Peg Inc.: - Corporate tax rate: 38% - Cost of equity is 16%, cost of debt is 10%, and debt ratio is 50% - Interest coverage ratio (defined as EBIT-to-interest expense) is 10 - After 2011, EBIT are expected to grow at 3% a. Estimate the free cash flows of Peg Inc. for the 4 years 2008 to 2011 and compute the enterprise value as of year-end 2007. b. Estimate the free cash flows to equity holders for the 4 years 2008 to 2011 and compute the equity value as of year-end 2007 c. Compute the debt value as of year-end 2007