Use the following information to answer questions 3031. You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year for ever. However, you recognize that those cash flows are uncertain. Suppose you believe that the beta of the firm is 0.4 , the risk-free rate is 5 percent, and the expected market risk premium is 7 percent. 30. Considering the above information, what discount rate should you use to evaluate the firm? A. 10.8% B. 8.6%. C. 9.3%. D. 6.5%. E. None of the above. 31. Considering the above information, how much is the firm worth? A. $88,205.34 B. $95,104.46 C. $128,205.12 D. $115,308.87 E. None of the above