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The following data apply to the next six questions. Delta Inc. is growing quickly. Revenues, which are forecast to be $500 million in one year, are expected to grow at 10% per year for the two years after that, 8% per year for the next two years, and 6% per year after that. Expenses including depreciation we 60of revenues. Net investment, including networking capital and capital expenditures less depreciation, la 10% of revenum Because costs are proportional to revenues, net cash flows (sometimes referred to as free cash flow) grows at the same rate us do revenues Delta is an all-equity firm with 12 million shares outstanding. Assume that Delta has a 35% tax rate and the company's stock has a beta of 1,5. The risk-free rate is 4% and the market risk premium is 8% 21 of 30 What rate should be used to discount the firm's cash flows? a 6.00% Ob 9.50% Oc12.00% Od 15.00% Oo. None of the above. Un