1) A firm's current FCF is $10 million. The firm's FCF is expected to grow at a high annual rate of 10% for 7 years, after which it will grow at a constant annual rate of 4% for ever. Assume that the FCF is realized at the end of each year, and that the firm's cost of capital is 18%. Which of the following formulas would you use to compute the terminal value of the firm at Year 7? $10mnx(1.1)? 0.18 $10mnx(1.1)? 0.18-0.04 $10mnx (1.1)? 1.04 0.18-0.04 $10mnx (1.1)? x1.04 (0.18 0.04) >1.187