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Suppose XYZ Inc. will have cash flows from assets (CFFA) next year of $112 million. The discount rate is 11%. XYZInc. has 40 million shares

Suppose XYZ Inc. will have cash flows from assets (CFFA) next year of $112 million. The discount rate is 11%. XYZInc. has 40 million shares outstanding, market value of debt is 8 million, and the book value of cash is $17 million. XYZInc.s stock is currently trading for $36 per share.

If you believe XYZ Inc.s CFFA will grow at the constant rate forever, what is the implied growth rate based on the above information?

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