PLEASE ANSWER ALL QUESTIONS

You are analyzing the U.S. equity market based upon the SsP Industrials Index and using the present value of free cash flow to equity technique. Your inputs are as follions: Beginning FCFE1 $30 k=0.07 3. Assuming that the current value for the SsP Industriais Index is 4,900 , would you underweight, overweight, or market weight the U.5. equity market? Do net round intermediate calculations. Round your answer to the nearest cent. You should the U.S. equity market as the estimated value of the stock of s the SaP Industriais Index. b. Assume that there is a 2 percent increase in the rate of inflation - what would be the market's value, and how would you weight the U.5, market7 Assume that the reguired retum would increase from 7% to 9%, decreasing the value. Also assume that the nominal cash flow growth rates would increase for all time periods oy tho percentage points. Do not round intermediate calculations, Round your answer to the nearet cent. You should the U.S. equity market as the estimated value of the stock of $ is than the SaP industrials index