You are considering acquiring a firm that you believe can generate expected free cash flows of $9,000 a year forever. However, you recognize that those cash flows are uncertain. a. Suppose you believe that the beta of the firm is 0.7 . How much is the firm worth if the risk-free rate is 4% and the expected market The value of the firm premium is 7% ? (Do not round the discount rate in your calculation. Round your answer to the nearest cent.) b. By how much will you misvalue the firm if its beta is actually 0.9 ? (Do not round the discount rate in your calculation. Do not round intermediate calculations. Round your answar ta the nearest cent. Enter vour answer as positive value.)