Given the following information, calculate the implied perpetuity growth rate (assuming mid-year discounting) and select the best response.

Exit Multiple		9.2x
EBITDA(year 5)		500.0
TV (EMM)		4,600.0
FCF (year 5)		410.0
PV FCF(years 1 through 5)		1,450.8
WACC		10.0%

Group of answer choices

the implied perpetuity growth rate is less than 1% and suggests the exit multiple is too high

the implied perpetuity growth rate is greater than 3.5% and suggests the exit multiple is about right

the implied perpetuity growth rate is greater than 3.5% and suggests the exit multiple is probably too high

the implied perpetuity growth rate is less than 1% and suggests the assumed exit multiple is too low