Q4) Calculate the i) present value of the equity and ii) present value of the firm using the relevant cash flows and appropriate discount rates. Current FCFE is $10 and current FCFF is $15. The growth rate for FCFE is 15% and FCFF is 10% respectively for three years. The growth rate is 20% beyond three years for both the cashflows. The firm's tax rate is 10%, discount rate is 10%, cost of debt is 10%, and the cost of equity is 15%. The firm is financed with 50% debt and 50% equity. (10 marks) Year 0 1 2 3 Free cash flow to equity (FCFE) $10 ? ? ? Free cash flow to firm (FCFF) $15 ? ? 2