market based upon the S&P Industrials Index and using the present value of free cash flow to equity technique. Your inputs are as follows: Beginning FCFE: $ 80 k = 0.11 \table[[Growth Rate:,], [ Year 1-3:,11% ก 2 Problem 9-07 You are analyzing the U.S. equity market based upon the S&P Industrials Index and using the present value of free cash flow to equity technique. Your inputs are as follows Beginning FCFE: $80 k 0.11 Growth Rate: Year1-3: 4-6: 7 and beyond 11% 10% 9% a. Assuming that the current value for the S&P Industrials Index is 4,450, would you underweight, overweight, or market weight the U.S. equity market? Do not round intermediate calculations. Round your answer to the nearest cent. You should -Select-the U.S. equity market as the estimated value of the stock of $ is Select the S&P Industrials 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.S. market? Assume that the required return would increase from calculations. Round your answer to the nearest cent. % to 13 %, decreasing the value. Also assume that the nominal cash flow growth rates would increase for all time periods by two percentage points. Do not round intermediate- You should -Select- the U.S. equity market as the estimated value of the stock of $ is Select than the S&P Industrials Index.