QUESTION 12 Salle's Sandwiches Sallie's Sandwiches is financed using 20% debt at a cost of 896 Sallie projects combined free cash flows and interest tax savings of 52 million in Year 1.5A million in Year 2.55 million in Year 3, and $117 million in Year 4. (The Year 4 value includes the combined horizon values of FCF and tax shields) All cash flows are expected to grow at a 3% constant rate after Year 4. Sallie's beta is 2.0, and its tax rate is 25%. The risk-free rate is 6%, and the market tisk premium is 596 Using the data for Sallie's Sandwiches and the compressed adjusted present value model, what is the appropriate rate for use in discounting the free cash flows and the interest tax savings? 16.99 ob 14.496 c. 13.996 d. 12.0% e. 16.09 QUESTION 13