Apple and Google are in the same risk class and are identical in every respect except that Apple is partly debt financed while Google is not. Apple has N$60 million in 5% debentures. Both firms earn 10% before interest and taxes on their N$90 million of total assets. Assume perfect capital markets, rational investors, a company tax rate of 32%, and a capitalization rate of 10% for an all equity company. Required: a) Compute the value of each firm using the net income (NI) approach. (8 marks) b) Compute the value of each firm using the net operating income (NOI) approach. (6 marks) c) According to the NOI approach, the values of firm Apple and firm Google computed in part (a) above are not in balance. If a situation like this exists, an investor in overvalued firm can (as per MM approach), through the arbitrage process, secure the same income at lower cost. Assuming you own 2% of Apple's shares, show the process that will give you the same amount of income but at less cost. (22 marks)