Question 8 Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter. Flagstaff has an equity cost of capital of 13%, a debt cost of capital of 7%, and it is in the 35% corporate tax bracket. If Flagstaff currently maintains a debt to equity ratio of 1, then the value of Flagstaff as a leveredi firm is closest to: $114 million $100 million $111 million 1 pts $139 million