Problem 9-07 You are analyzing the U.S. quity market based upon the SAP Industrial Index and using the present value of free cash flow to equity technique. Your inputs are nu follows: Beginning FCFE: $70 k-0.11 Growth Rate: Year 1-3: 4-6: 7 and beyond 11% 10% 9% a. Assuming that the current value for the S&P Industrials Index is 4,650, would you underweight, overweight, or market weight the U.S. equity market? Do not round Intermediate calculations, Round your answer to the nearest cent. You should -Select the U.S. equity market as the estimated value of the stock of $ Is Select the S&P Industrials Index b. Assume that there is a 2 percent increase in the rate of inflation - what would be the market's value, and how would you weight the U.S. market? Assume that the required return would increase from 11% to 13%, decreasing the value. Also assume that the nominal cash flow growth rates would increase for all time periods by two percentage points. Do not round intermediate calculations, Round your answer to the nearest cent. You should -Select the U.S. equity market as the estimated value of the stock of $ is -Select than the S&P Industrials Index. 4-6: 7 and beyond a. Assuming that the current value for the S&P Industrials Index is 4,650, would you un round intermediate calculations. Round your answer to the nearest cent. You should -Select v the U.S. equity market as the estimated value of the stoc b. Assume that there is a 2 percent increase in the rate of inflation -- what would be the the required return would increase from 11% to 13%, decreasing the value. Also ass periods by two percentage points. Do not round intermediate calculations. Round you You should -Select the U.S. equity market as the estimated value of the stoc Select underweight overweight market weight