The company reported net income of $30 million for the most recent fiscal year (i.e., year 0). The firm expects a net income growth rate of 10% per year over the next 4 years, after which the growth rate will decline to 3% per year . The return on equity (ROE) is expected to be 40% for the next 4 years and drops to 25% thereafter. The company is expected to maintain a 10% cost of equity indefinitely.

a. What will be company's equity reinvestment rates in the high-growth & the stable-growth stage, respectively?

b. What will be company's free cash flow to equity (FCFE) next year (i.e., year 1)?

c. What will be company's free cash flow to equity (FCFE) in year 5?

d. What is company's equity value today based on a two-stage FCFE model?