Common stock value-All growth models Personal Finance Problem You are evaluating the potential purchase of a small business currently generating $40,000 of after-tax cash flow (D = $40,000). On the basis o a review ofsm ar nsk investment opportunities, you must earn a rate of return o 17% on the proposed purchase. Because you are relatively uncertain about future cash flows, you decide to estimate the firm's value using two possible assumptions about the growth rate of cash flows a. What is the firm's value if cash flows are expected to grow at an annual rate of 0% from now to infinity? b. What is the firm's value if cash flows are expected to grow at a constant rate of 5% from now to infinity? c. What is the firm's value i cash flows are expected o grow a an annual rate of 10% or the rst 2 years. followed by a constant annual ate of % o m vea 3 to n nit y? a. The firm's value if cash flows are expected to grow at an annual rate of 0% from now to infinity is S 235,294. (Round to the nearest dollar) b. The firm's value if cash flows are expected to grow at a constant rate of 5% from now to infinity is S 350,000. (Round to the nearest dollar) c. The firm's value nearest dollar) cash flows are expected to grow at an annual rate of 10% for the first 2 years, followed by a constant annual rate of 5% from year 3 to infinity s$ Round to the