1. Using the information from the financial statements below and the FCFF and FCFE formulas calculated using net income, estimate the following: 1. FCFF = NI + NCC + Int(1 - Tax rate) - FCInv- WCInv 2. FCFENI+NCC-FCInv-WCInv+ Net borrowing Statement of Income (in Millions, except Per-Share Data) December 31, 2020 $2,215 1.430 Total revenues Operating cost and expenses EBITDA Depreciation EBIT Interest expense Income before tax Taxes (at 40%) Net income Dividends Addition to retained earnings Statement of Cash Flows (in Millions) Operating activities Net income Adjustments Depreciation. Changes in working capital Accounts receivable Inventories Accounts payable Accrued taxes and expenses Cash provided by operating activities Investing activities Purchases of fixed assets. Cash used for investing activities Financing activities Notes payable Long-term financing issuances Common stock dividends Cash used for financing activities Cash and equivalents increase (decrease) Cash and equivalents at beginning of year Cash and equivalents at end of year What is the FCFF? What is the FCFE? 785 180 $40 605 130 475 190 285 90 195 December 31, 2020 $285 180 (39) (44) 22 23 $427 349 $349 $(10) (40) 20 30 210 $248