The following table shows expected cash flows of firm XYZ. Calculate the cash flows of 2021 and 2022 with the assumption that net sales will grow at 5% and consequently all other things too. After 2022, cash flows will grow at a constant rate of 6% and discount rate is 10%. Calculate the estimated firms value. Suppose 1- E/A = 40%. The firm can issue debt at 11%. Rf is 5%, market return is 8%, tax rate is 10%, and firms beta is 3 times higher than the market. (10) 2017 2018 2019 2020 2021 2022 Net sales $60.0 $90.0 $112.5 $127.5 - Cost of goods sold 36.0 54.0 67.5 76.5 - Selling/admin. exp. 4.5 6.0 7.5 9.0 - Interest expense 3.0 4.5 4.5 6.0 EBT 16.5 25.5 33.0 36.0 - Taxes 6.6 10.2 13.2 14.4 Net Income 9.9 15.3 19.8 21.6 Retentions 0.0 7.5 6.0 4.5 Cash flow 9.9 7.8 13.8 1