Question 13 The following table shows the projected free cash flows of an acquisition target. The potential acquirer wants to estimate its maximum acquisition price at an 8 percent discount rate and a terminal value in year 5 d on the perpetual growth equation with a 4 percent perpetual growth rate. Year Free cash flow 800 400 S0 $200 $700 a. Estimate the target's maximum acquisition price. b. Estimate the target's maximum acquisition price when the discount rate is 7 percent and the perpetual growth rate is 5 percent. c. What is the percentage change in the maximum acquisition price when the discount rate is reduced one percentage point and the per- petual growth rate is increased one percentage point