Required:

The MoMi Corporation's cash flow from operations before interest and taxes was $$2$ million in the year just ended, and it expects that

this will grow by $5\%$ per year forever. To make this happen, the firm will have to invest an amount equal to $20\%$ of pretax cash flow

each year. The tax rate is $21\%.$ Depreciation was $$200,000$ in the year just ended and is expected to grow at the same rate as the

operating cash flow. The appropriate market capitalization rate for the unleveraged cash flow is $12\%$ per year, and the firm currently

has debt of $$4$ million outstanding. Use the free cash flow approach to calculate the value of the firm and the firm's equity.

Note: Enter your answer in dollars not in millions.

Value of the firm

Value of the firm's equity