Q8-Q10 are based on the following information In the year prior to going public, a firm has revenues of $20 million and net income after taxes of $2 million. The firm has no debt, and revenue is expected to grow at 20% annually for the next five years and 5% annually thereafter. Net profit margins are expected remain constant throughout. Capital expenditures are expected to grow in line with depreciation and working capital requirements are minimal. The average beta of a publicly traded company in this industry is 1.50 and the average debt equity ratio is 20%. The firm is managed very The normal spread in the sixth year and beyond, the discount rate is expected to decline by 3 percentage points. Estimate the value of the firm's equity. atively and does not intend to borrow through the f future. The Treasury bond rate is 6% and the tax rate is 40% between the return on stocks and the risk free rate of return is believed to be 5.5%. Reflecting the slower growth rate 8. What is the beta of this firm? QUESTION 9 9, what is the cost of equity in the first five years? (Provide your answer in decimals, i,e, enter 0.1 instead of 10%.) QUESTION 10 10. What is the total value of this firm? (Answer must be in million dolars, but write the number only.) Q8-Q10 are based on the following information In the year prior to going public, a firm has revenues of $20 million and net income after taxes of $2 million. The firm has no debt, and revenue is expected to grow at 20% annually for the next five years and 5% annually thereafter. Net profit margins are expected remain constant throughout. Capital expenditures are expected to grow in line with depreciation and working capital requirements are minimal. The average beta of a publicly traded company in this industry is 1.50 and the average debt equity ratio is 20%. The firm is managed very The normal spread in the sixth year and beyond, the discount rate is expected to decline by 3 percentage points. Estimate the value of the firm's equity. atively and does not intend to borrow through the f future. The Treasury bond rate is 6% and the tax rate is 40% between the return on stocks and the risk free rate of return is believed to be 5.5%. Reflecting the slower growth rate 8. What is the beta of this firm? QUESTION 9 9, what is the cost of equity in the first five years? (Provide your answer in decimals, i,e, enter 0.1 instead of 10%.) QUESTION 10 10. What is the total value of this firm? (Answer must be in million dolars, but write the number only.)