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Question 11 5 pts Afirm has a pre-tax cost of debt of 8%, a debt to capital ratio of 25%, total debt of $2,500, 25%

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Question 11 5 pts Afirm has a pre-tax cost of debt of 8%, a debt to capital ratio of 25%, total debt of $2,500, 25% tax rate, perpetuity growth of 5%, exit multiple of 6xYr3EBITDA, beta = 1.2, risk-free rate = 4%, market risk premium = 8%, and the following cash flows: Year 1 2 3 EBITDA 1800 2200 2600 Free cash flow 500 625 840 Using the year 3 exit multiple of 6 times EBITDA, determine the total enterprise value of this firm today. $12,745 $10,732 $13,492 $11,193

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