The Prentice Paint Company earned a net profit margin of 20 percent on revenues of $20 million this year. Fixed capital investment was $2 million, and depreciation was $3 million. Working capital investment equals 7.5 percent of sales level in that year. Net income, fixed capital investment, depreciation, interest expense, and sales are expected to grow at 10 percent per year for the next five years. After five years, the growth in sales, net income, depreciation and interest expense will decline to a stable 5 percent per year, and fixed capital investment and depreciation will offset each other. The tax rate is 40 percent, and Prentice has 1 million shares of common stock outstanding and long-term debt paying 12.5 percent interest trading at its par value of $32 million. Calculate the value of the firm and its equity using the FCFF model if the WACC is 17 percent during the high growth stage and 15 percent during the stable stage. None of the listed are correct Value of firm =$62.0 million and value of equity =$30.0 million Value of firm =$62.4 million and value of equity =$32.3 million Value of firm =$61.5 million and value of equity =$29.5 million Value of firm =$60.5 million and value of equity =$28.5 million