Given are the following details: risk free rate is $6\%$; beta of the stock is $1\mathrm{.}5$ ; market risk

premium is $12\%$; annual cash flows generated by the company at $t=0$ is Rs $180,000$ ;

this annual cash flow is expected to grow at a rate of $8\%$ per annum forever. Calculate

the value of the firm.

$(12$ Marks$)$