Question 1: When we forecast financial statements beyond 5-year window, we assume a long-run growth rate (g) for year +6 and afterward. Is it meaningful if g is greater than Cost of Equity (R.)? Free Cash Flow quity, /(1+R2" + Free Cash Flow kquityya, *1/01) [1/(1+R;)"|| Question 2: When we calculate weighted average cost of capital (WACC), why we usee values of obt capital to our best? Question 1: When we forecast financial statements beyond 5-year window, we assume a long-run growth rate (g) for year +6 and afterward. Is it meaningful if g is greater than Cost of Equity (R.)? Vo Free Cash Flow Equity,/(1+ R.)"} + Free Cash Flow Equityr., * [1/(x-2)] * [1/(1 + Rx)*]