s. You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year forever. However, you reogine ha boe oash a Suppose you believe that the beta of the firm is 0.4. How much is the firm worth if the risk-free rate is 4% and the expected rate of return on the market portfolio is 11%? (5 points) b. By how much will you overvalue the firm if its beta is actually 0.6? (5 points) 57