1. Using the information from the financial statements below and the FCFF and FCFE formulas calculated using net income, estimate the following: a. FCFF = NI + NCC + Int(1 - Tax rate) - FCInv - WCiny b. FCFE = NI + NCC - FCiny - WClny + Net borrowing Statement of Income (in Millions except Per-Share Data) December 31, 2020 Total revenues $2,215 Operating cost and expenses 1.430 EBITDA 785 Depreciation 180 EBIT 605 Interest expense 130 Income before tax 475 Taxes (at 40%) 190 Net income 285 Dividends 90 Addition to retained earnings 195 Statement of Cash Flows (in Millions) December 31, 2020 Operating activities Net income $285 Adjustments Depreciation 180 Changes in working capital Accounts receivable (39) Inventories (44) Accounts payable 22 Accrued taxes and expenses 23 Cash provided by operating activities $427 Investing activities Purchases of fixed assets 349 Cash used for investing activities $349 Financing activities Notes payable $(10) Long-term financing issuances (40) Common stock dividends 90 Cash used for financing activities $40 30 Cash and equivalents increase (decrease) 210 Cash and equivalents at beginning of year $248 Cash and equivalents at end of year