abe DEF 1ValuationApple Inc.: Develop a DEF valuation model for Apple Inc. {Apple} using the following the company in that year. Discuss the major factors that caused the free cash ows to change from year to year. information and the nancial information in Exhibit P12. which includes summary historical nancial state- ments and free cash ows {l and 2011} and 11 years of forecasts {2312 through 212122]. Use free cash ow forecasts for 11 years (212 through 222}. a constant growth rate of 2.5% for free cash ows generated in perpetuity after 2(122, and a risk-adjusted discount rate of 12.5%. Use the free cash ow forecast for 222 and constant perpetual growth rate of 2.5% to measure the continuing value of the rm as of the end of 2132 1. Apple has excess assets it does not need for its operations totaling $T.?45 billion. These excess assets include excess cash {$ 15.12? billion} and longterm securities (1"; 5 5.5 18 billion]. For simplicity. assume that there is no tax that would be levied on Apple's excess assets if Apple were to distribute them to its shareholders. The free cash ow forecasts exclude any effects from Apple's excess assets. P 13 Economic Balance SheetApple Inc.: Review Apple [nc.'s {Apple} nancial statements in Exhibit P12 and its excess assets and valuation from P1.?. Prepare an economic balance sheet for Apple similar to the economic balance sheet in Exhibit 1.1. Discuss potential reasons for the differences between the values on the economic balance sheet and Apple's fniancial statements