An analyst used a pro forma model to forecast $200 of Free Cash Flow in the terminal year, FCFt=$200. If forms in this industry trade at around 15 times cash flow and the weighted average cost of capital is 10%, what can you say about those cash flows beyond the terminal year?

*Multiple choice, one correct answer*

A) They can only decline

B) Nothing, because future cash flows must be discounted at a rate higher than their annual growth

C) Their worth is limitless because they grow forever

D) Not enough information to tell if any of these are true

E) Their long term growth rate is exactly 8%

F) Their long term growth rate is just over 3%

G) They will be flat forever