need help working through and solving Q2a/b and Q3

2) FinCorp's free cash flow to the firm is reported as $205 million. The firm's interest expense is $22 million. Assume the corporate tax rate is 21% and the net debt of the firm increases by $3 million. What is the market value of equity if the FCFE will remain unchanged for the first 3 years and then is projected to grow at 3% indefinitely with a cost of equity of 12% and WACC of 10% ? $1,312,997,297MarketValueofEquity:$1,895,830,+99P+=(.12.03)205,000,0001.03=2346,111,111 MVE=(1+.12)3205,000,001+(1+.12)3(.12.03)205,000,0001.03=1,815,830,4994P+=(1.126.03)147,570,000P+=1,639,666,667 2a) What is the appropriate discount rate to use and why? The appropriate discount rute would be cost of equity of 72% becaus We an trying to find the cost of equity which besmintakes requires us to use KE. rather then WACC. 3) Explain the concept of survivorship bias and how it can influence portfolio performance analysis