42. Stable Growth Corp. ("SGC") has had a consistent growth rate for the past ten years and is assumed to have stable growth into the future. You have obtained the following information from SGC: Growth rate: 3% Desired rate of return: 10% Year Net Cash 1 2 3 4 5 $35,000 $36,050 $37,132 $38,246 $39,394 Flow You want to know what SGC's value is based on its cash flows. Which of the following best: reflects SGC's valuation, rounded to the nearest dollar? (A) $185,822 (B) $515,000 (C) $384,373 (D) $678,401 (E) $500,003 Question 43. Which of the following is required by ASC 840 when accounting for a capital lease? (A) The leased asset must always be recorded at its fair market value. (B) The leased asset must always be recorded at the present value of the minimum lease payments remaining. (C) The leased asset must be recorded at the greater of either the present value of the minimum lease payments or the leased asset's fair market value. (D) The leased asset must be recorded at the lesser of either the present value of the minimum lease payments or the leased asset's fair market value. (E) None of the above because ASC 840 only pertains to operating leases