The following are selected numbers from the financial statements of RS REIT for 2009 and 2010 (in millions).

	2009Y	2010Y
Revenues	$8,494	$9,000
Less: Operating Expenses	$6,424	$6,970
Less: Depreciation	$870	$860
Less: Interest Expenses	$510	$515
= Net Income	$690	$655
Working Capital	$45	$50
Total Debt	$5.4 billion	$5.0 billion

The REIT had capital expenditures of $1 billion in 2009 and $950 million in 2010. The working capital in 2008 was $190 million, and the total debt outstanding in 2008 was $5.75 billion. There are 305 million shares outstanding, trading at $21 per share (as of 2010).

a.) Estimate FFO, FAD, and the cash flows to equity in 2009 and 2010.

b.) Assuming that revenues and all expenses (including depreciation and capital expenditures) increase 4%, and that working capital remains unchanged in 2011, estimate the projected cash flows (i.e., FFO, FAD, and FCFE) to equity in 2011. (The REIT is assumed to be at its optimal financial leverage.)