Common stock value All growth models Personal Finance Problem You are evaluating the potential purchase of a small business currently generating $42,500 of after-tax cash flow (Do $42,500). On the basis of a review of similar-risk investment op rtunities, you must earn a rate o return o 12% on the pro osed purchase. Because you are relative uncertain about uture cash tows, you decide o estimate the firm's value usin to possible assumptions about the growth rate of cash flows a. what is the firm's value ir cash nows are expected to grow at an annual rate or 0% from now to infinity? b. What is the firm's value if cash flows are expected to grow at a constant rate of 7% from now to infinity? c What is the firm's value if cash flows are expected to grow at an annual rate of 10 for the first 2 years follo ed by a constant annual rate of 7% from year 3 to infinity? a. The firm's value if cash flows are expected to grow at an annual rate of 0% from now to infinity is $ 354166.67. {Round to the nearest dollar.) b. The firm's value if cash flows are expected to grow at a constant rate of 7% from now to infinity is $ 909500 . (Round to the nearest dollar.) c. The firm's value if cash flows are expected to grow at an annual rate of 10% for the first 2 years followed by a constant annual rate of 7% from year 3 to infinity is $ (Round to the nearest dollar