Incorrect Valuation Assumptions: A privately held company finances itself with long$-$term debt and preferred stock using the capital structure shown below. The company's current free cash flow is $$100,$ and it expects to generate a series of cash flows that will grow at $3\%$ per year in perpetuity. The company plans to maintain its current capital structure strategy of $50\%$ debt and $20\%$ preferred stock in perpetuity, refinancing the company on an ongoing basis.