Question 4 3 pts An all equity capitalized firm (i.e. no debt in capital structure) is expected to produce a cash flow in the amount of $150,000 in its first year of operation. Cash flow is expected to grow at 2% annually for the foreseeable future each year thereafter. If the frm's investors require an 8.00% return, what is the estimated Market Value of the Firm today based on this information? $1,000,000 $2.500,000 $%1.010,101 O Cannot calculate with given information Question 5 3 pts Refer back to previous question. If another company offers to buy the firm detailed in #4 for $1,800,000, and all other information stays the same, what can we conclude about this new company's required rate of return? O The new company-buyer has a lower required rate of return on the investment than the original investor group. O The new company-buyer has a higher required rate of return on the investment than the original investor group The new company-buyer has the same required rate of return on the investment as the original investor group. O O Cannot evaluate with given info 3 pts Question 6 The CFO of Anthem Insurance company is preparing for the budgeting discussions presented by each business unit in the company. She knows that she will need some idea of the company's cost of capital to fund these projects in order to evaluate and compare the options. Anthem's cost of capital depends primarily upon. O a. total assets reported in company's financial statements. b. the nature of the company's business (operating risk) O c. the amount of debt financing (leverage) it choses to utilize (financing risk) d, b. only e.both a.&b f.both b.&c