1. Develop the Balance Sheets and Income Statement for a publicly traded firm that will be necessary to estimate CFFA.Using only, , estimate the firm's most recent CFFA and then estimate the value of this constant growth firm.Assume that:

a. The firm has a constant growth in its CFFA of 3%

b. Similar corporate bonds of similar risk are yielding 13%

c. The firm's equity has a Beta of 1.10

d. E(R)m= 8% and Rrisk free = 2%

e. The firm is financed with 50% debt and 50% equity

f. The marginal tax rate for the firm is 25%

g. The firm plows back 25% of its Net Income into its Retained Earnings

Make sure you thoroughly develop and explain the concepts involved.