You are valuing TECH, a young, high growth technology company and have estimated the net income and cashflows to equity for the next 3 years. The cost of equity is assumed to be 12%. Projected Cashflows (in Millions) a. After year 3, you expect the firm to stay all equity funded with a cost of equity of 12% and anticipate the net income to grow 4% a year in perpetuity. If you believe that the firm cannot generate excess returns (i.e, will earn zero excess returns) in perpetuity with reinvestment rate 33.33% after year 3 , estimate the terminal value of equity. (5 points) b Given the expected cashflows and the terminal value of equity (from part a), estimate the value of equity today. (5 points)