Delta Inc. is growing quickly. Revenues, which are forecast to be $500 million in one year, are expected to grow at 10% per year for the two years after that, 8% per year for the next two years, and 6% per year after that. Expenses including depreciation are 60% of revenues. Net investment, including not working capital and capital expenditures less depreciation, is 10% of revenues. Because all costs are proportional to revenues, net cash flows (sometimes referred to as free cash flow) grows at the ate as do revenues Delta is an all-equity firm with 12 million shares outstanding. Assume that Delta has a 35% tax rate and the wmpany's stock has a beta of 1.5. The risk-free rate is 4%, and the market risk premium is 8%. What rate should be used to discount the firm's cash flows? O a 6.00% Ob 9.50% OC 12.00% Od 16.00% O None of the above What is your estimate to the Terminal Value (TV)? O a $1,268 million OD 51,171 million Oc$1,047 million Od $1.376 million O None of the above What is your estimate to the value of the firm using DCF approach? O a $735 million Ob $774 million Oc$879 million Od $913 million e None of the above