Task 1:

Value of firm depends on FCF, risk, and growth. In your analysis of Corp Hitam, you find the average growth rate over the past 5 years: Assets about 25%, Sales about 15%. Assuming FCF and risk remained unchanged. The value of this firm likely to increase/decrease and why? [Word limit: 50 words]

Task 2: Should we accept a project with NPV = 0 and why?[Word limit: 50 words]

Task 3: Why cost of equity (k) is always smaller than the growth rate? [Word limit: 50 words