Consider a firm that this year generated free cash flow of $150million. The firm's cash is considered to grow by 2% anually towards infinity. The WACC (discount rate) is 10%
a) Value the firm in the scenario above
b) Consider now that the ECB increase interest rates. Hence the WACC will increase to 15%. Value the firm in this scenario
c) Consider now that an example where the firm's cash flows grow by 8% annually until t=5, after t=5, the growth rate is considered to slow down to 2% annually. Value the firm in this scenario.