An analyst is evaluating a company based on the information below:

Equity beta $=1\mathrm{.}3,$ risk$-$free rate $=2\%,$ equity risk premium $=5\mathrm{.}0\%$

Cost of debt $=6\mathrm{.}5\%$

Marginal tax rate $=35\%$

Capital structure $=30\%$ debt, $70\%$ equity

Outstanding shares $=200$ million

Long$-$term debt $=$ $$1\mathrm{.}2$ billion

Current free cash flow to the firm $($

F

C

F

F

$0$

$)=$ $$450$ million

The analyst believes that the future growth of the company$$s free cash flow to the firm $($FCFF$)$ can be modelled with the second version of the three$-$stage model where the second stage follows a smooth, linear transition in the growth rate. The forecast growth rates in the first and third stages are as follows.

Years $1$ to $3$: $25\mathrm{.}0\%$ annually

Year $11$ and thereafter: $1\mathrm{.}5\%$ annually

Which of the following is not consistent with the analyst$$s belief?

Question $16$ Select one:

a$.$

The forecast growth rate of Year $7$ is $13\mathrm{.}2\%.$

b$.$

The forecast growth rate of Year $5$ is $19\mathrm{.}1\%.$

c$.$

The forecast growth rate of Year $6$ is $14\mathrm{.}9\%.$

d$.$

The forecast growth rate of Year $9$ is $7\mathrm{.}4\%.$