Good Evening!

Can you explain how to solve for this question?

You are evaluating Apple, Inc. (AAPL) by using the FCFF and FCFE valuation approaches and have collected the following information:

• AAPL has net income of $78 billion, depreciation of $23 billion, capital expenditures of $43 billion, and an increase in working capital of $14 billion.
• AAPL will finance 40% of the increase in net fixed assets (capital expenditures less depreciation) and 40% of the increase in working capital with debt financing.
• Interest expenses are $18 billion. The current market value of AAPL's outstanding debt is $10 billion.
• FCFF is expected to grow at 4.25% indefinitely, and FCFE is expected to grow at 6.5%.
• The tax rate is 35%.
• AAPL is financed with 40% debt and 60% equity. The before-tax cost of debt is 7.5%, and the cost of equity is 11.5%.
• AAPL has 5 billion outstanding shares.

Using the FCFF valuation approach, estimate the total value of the firm, the total market value of equity, and the per-share value of equity for AAPL.

1) Firm Value = $629.38; Equity Value = $619.38; Per share Value = $123.88

2) Firm Value = $800.93; Equity Value = $790.93; Per share Value = $158.19

3) Firm Value = $1,262.33; Equity Value = $1,252.33; Per share Value = $250.47

4) Firm Value = $1,262.33; Equity Value = $1,226.88; Per share Value = $245.38

Thanks!