Q6) The following table shows expected cash flows of firm XYZ. Calculate the cash flows of 2021 and 2022 with the assumption that net sales will grow at 5% and consequently all other things too. After 2022, cash flows will grow at a constant rate of 6% and discount rate is 10%. Calculate the estimated firm's value. Suppose 1-E/A = 40%. The firm can issue debt at 11%. Rf is 5%, market return is 8%, tax rate is 10%, and firm's beta is 3 times higher than the market. (10) 2021 2022 Net sales - Cost of goods sold -Selling/admin. exp. -Interest expense EBT - Taxes Net Income Retentions Cash flow 2017 $60.0 36.0 4.5 3.0 16.5 6.6 9.9 0.0 9.9 2018 $90.0 54.0 6.0 4.5 25.5 102 15.3 2012 SI12.5 675 7.5 4.5 33.0 132 19.8 2020 $127.5 76.5 9.0 6.0 36.0 14.4 21.6 75 60 45 7.8 13.8 17.1