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You are considering acquiring a firm that you believe can generate expected free cash flows of $12,000 a year forever. However, you recognize that those

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You are considering acquiring a firm that you believe can generate expected free cash flows of $12,000 a year forever. However, you recognize that those cash flows are uncertain a. Suppose you believe that the beta of the firm is 03. How much is the firm worth if the risk-free rate is 3% and the expected market risk premium is 9%? (Do not round the discount rate in your calculation. Round your answer to the nearest cent.) The value of the fire b. By how much will you misvalue the firm if its beta is actually 0.5? (Do not round the discount rote in your calculation. Do not round Intermediate calculations. Round your answer to the nearest cent. Enter your answer os positive volue.) by underestimating beta, you would (Click to select the fire by

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