Question 2\

1pts

\ Find the value of the firm with a WACC of

12%

and a tax rate of

21%

. Its current (year 0 ) cashflows are

$11m

. Analysts expect these to grow at

11%

for two years and then to settle out at a constant growth rate of

2%

.

Find the value of the firm with a WACC of 12% and a tax rate of 21%. Its current (year 0 ) cashflows are $11m. Analysts expect these to grow at 11% for two years and then to settle out at a constant growth rate of 2%