Fincorp’s free cash flow to the firm is reported as $205 million. the firm’s interest expense is $22 million. assume the tax rate is 35% and the net debt of the firm increases by $3 million. what is the market value of equity if the fcfe is projected to grow at 3% indefinitely and the cost of equity is 12%?

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.