Question 2 0.4 pts Which of the following is the correct method to use to calculate firm value using the WACC method? Calculate the expected cash flows for the firm based on the firm's expected capital structure, and then discount them at the firm's weighted average cost of capital, WACC. Discount the expected cash flows based on all-equity financing at the firm's weighted average cost of capital, WACC 19 A firm has expected before-tax earnings of $35 million a year forever, starting next year. It is financed with 60% debt at an expected interest rate of 6% a year and 40% equity with an expected cost of 8% a year. If the firm is in the 39% tax bracket, what is its NPV? A. $314 B. $405 C. $323 D. $396 Calculate the expected cash flows for the firm based on the firm's expected capital structure, and then discount them at the overall cost dscapital for the firm, E( rfirm) Discount the expected cash flows based on all-equity financing at the oyerall cost of capital for the firm, E( rfiem)