Please use the problem statement data here for Questions 1 through 4. It's the start of 2020. For the year just ended, a firm had revenue of $2 billion, EBIT of $300 million, depreciation of $80 million and capital expenditures of $90 million. Net working capital is 10% of revenue. The tax rate is 20%. The firm has 100 million shares of equity priced at $50 per share. The firm also has $1.5 billion in debt on the balance sheet, trading at 110% of book value, yielding 5%. Treasurys yield 2%, the market risk premium is 8% and the firm's beta is 0.90. Starting in 2020, the firm will grow at 4% per year for the foreseeable future. 1. The free cash flow to the firm in 2020 is ? (a) (b) (c) (d) $247.2 million $231.2 million $31.2 million $426.2 million 2. What is the appropriate cost of capital? (a) (b) (c) (d) 7.91% 8.00% 6.56% 9.20% 3. What is the overall firm value? (a) (b) (c) (d) $5,780.00 million $6,149.94 million $5.913.04 million $4,446.15 million 4. Regardless of your answer for #3, assume the firm's value is $7,000 million. What is the value of the firm's equity? (a) (b) (c) (d) $5,500 million $5,000 million $4,263 million $5,350 million