There are no taxes. A company has an asset beta of 0.75. The expected return on the market is 12% and the risk free rate is 4%. Its assets are expected to produce a cashflow (EBITDA) of $100 every year starting next year. The firm has debt which is risk free and pays $20 every year starting one year from now. 1. What is the value of the assets? (Hint: value of something is PV of ECF at OCC) 2. What is the value of the firms debt? (Hint: value of something is PV of ECF at OCC) 3. Write down the firms balance sheet. 4. What is the beta of the firms equity? What is the OCC of the firms equity?