Management plans to maintain debt at 30% of the company's present value, and they believe that at this capital structure the company's debt holders will demand a return of 6% and stockholders will require 11%. The company is forecasting that next year's cash flow will be $68 million Afterwards, from year two until year five, the cash flow will grow by 4% a year. After year five, the growth rate will be zero. The tax rate is 40%. Find the cost of capital. Select one: O a. 11% Ob. 10% OC 8.78% d. 7.5% Find the present value of the free cash flows for the first five years. Select one: O a $250 million O b. $286 million O c $881 million O d. 5324 million Find the terminal value at year five. Select one O a $525 million O b. $611 million O c. $906 million O d. 5595 million Find the proceeds from sale. Select one a $590 million b. $286 million O c. $881 million d. $1,090 million