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Free cash flow valuation You are evaluating the potential purchase of a small business with...

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Free cash flow valuation You are evaluating the potential purchase of a small business with no debitor preferred stock that is currently generating 541 700 of toch flow (FCFo$41,700) On the basis of a review of similar risk investment opportunites, you must com an) 19% rate of return on the proposed purchanie Because you are relatively uncertain about future cash flows, you decide to estimate the firm's value using several possible assumptions about the growth rate of cashows What is the firm's value if cash flows are expected to grow at an annual rate of 0% from now to infinity? b. What is the firm's value if cash flows are expected to grow at a constant annual rate of 6% from now to infinity? c. What is the firm's value if cash flows are expected to grow at an annual rate of 12% for the first 2 years, folowed by a constant annual rate of 6% from your lo infinity? a. The firm's value, if cash flows are expected to grow at an annual rate of 0% from now to infinity, is $(Round to the nearest cont)

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