Q3.9. Here is an example of the most common use of the growing perpetuity model (called a pro forma). Your firm just finished the year, in which it had cash earnings of $100 million. Excluding this amount, you want to determine the value of the firm. You forecast your firm to have a quick growth phase for 3 years, in which it grows at a rate of 20% per annum (ending year 1 with $120 up to ending year 3 with $172.8). Your firm's growth then slows down to 10% per annum for the next 3 years (ending year 4 with $190.1, etc.). Finally, beginning in year 7, you expect it to settle into its long-term growth rate of 5% per annum. You also expect your cost of capital to be 10% in your 20% growth phase, 9% in your 10% growth phase, and 8% in your 5% growth phase. Excluding the $100 million, what do you think your firm is worth today?