Match the appropriate discount or capitalization rate to the benefit stream highlighting the benefit stream and the discount/capitalization rate using the same color.

Benefit Stream Discout/Capitalization Rate Capitalization of Earnings/Cash Flow Build-Up Method + Risk-free rate Pre-tax earnings (income before taxes) +Equity risk premium +Size premium Company specific risks = After-tax net cash flow discount rate + After-tax earnings (net income) - Long-term sustainable growth rate Net cash flow to invested capital = After-tax net cash flow capitalization rate for next year divided by Adjustment for current year = After-tax net cash flow capitalization rate for current year Net cash flow to equity + Cash to earnings factor Pre-tax excess earnings = After-tax net income capitalization rate for current year + Intangible earnings factor After-tax excess earnings = = After-tax intangible capitalization rate for the current year Tax effect Discounting Future Cash Flows = Pre-tax net income capitalization rate for current year = Pre-tax intangible capitalization rate for the current year Projected cash flows Weighted Average cost of Capital (WACC) + Weighted Cost of Debt + Weighted Cost of Equity = WACC