\begin{tabular}{lr} Continuation Value: Multiples Approach ($000) \\ \hline EBITDA in 2010 & 27,655 \\ EBITDA Multiple & 9.1 \\ \hline Continuation Enterprise Value & 251,661 \\ Debt & (117,400) \\ \hline Continuation Equity Value & 134,261 \\ \hline \end{tabular} vala lavie Approximately what expected future long-run growth rate would provide the same EBITDA multiple in 2010 as Ideko ha in 2005 (i.e., 9.1 ) ? Assume that the future debt-to-value ratio is held constant at 40%; the debt cost of capital is 6.6% Ideko's market share will increase by 0.40% per year until 2010 ; investment, financing, and depreciation will be adjuste accordingly (see projected capital expenditures here li and the projected improvements in working capital occur (that is, Ideko's working capital requirements through 2010 will be as shown here ). The projected free cash flows and continuation values are shown here and here , respectively. Assume that Ideko's unlevered cost of capital is 11.52%. Assume an income tax rate of 35%. The expected future long-run growth rate would be %. (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) \begin{tabular}{|c|c|c|c|c|c|c|} \hline Free Cash Flow ($000) & 2005 & 2006 & 2007 & 2008 & 2009 & 2010 \\ \hline Net Income & & 5,121 & 5,541 & 6,531 & 8,300 & 8,904 \\ \hline Plus: After-tax Interest Expense & & 4,354 & 4,354 & 4,354 & 4,354 & 4,354 \\ \hline Unlevered Net Income & & 9,475 & 9,895 & 10,885 & 12,654 & 13,258 \\ \hline Plus: Depreciation & & 5,938 & 5,859 & 5,788 & 5,724 & 7,257 \\ \hline Less: Increase in NWC & & 4,616 & (2,323) & (2,570) & (2,948) & (3,284) \\ \hline Less: Capital Expenditures & & (5,150) & (5,150) & (5,150) & (5,150) & (21,050) \\ \hline Free Cash Flow of Firm & & 14,879 & 8,281 & 8,953 & 10,280 & (3,819) \\ \hline Plus: Net Borrowing & & & & & 4 & 15,900 \\ \hline Less: After-tax Interest Expense & & (4,354) & (4,354) & (4,354) & (4,354) & (4,354) \\ \hline Free Cash Flow to Equity & & 10,525 & 3,927 & 4,599 & 4,599 & 7,727 \\ \hline \end{tabular}