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After this, you expect the cash ows to grow at 5% every year after year 5. That is, cash ow in year 6 will he
After this, you expect the cash ows to grow at 5% every year after year 5. That is, cash ow in year 6 will he 5% larger than cash ow in year 5, and cash ow in year 5" will he 5% larger than cash ow in year 6, and so on. a. If assets with comparable risks to Cloudstore have a discount rate of 13%, up to how much would you be willing to pay to acquire this rm? h. Re-do your 1valuation for the scenario in which you expect no growth in Cloudstore's cash ows after year 5. That is, cash ow in year I5 will equal cash ow in year 5, cash ow in year '5" will equal cash ow in year 6, and so on. {2. Under what conditions would you prefer the valuation in (a)
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