1. if a firm has a free cash flow equal to $50 million and that cash is expected to grow at 3% forever. What is the total firm value given a WACC of 9.5%? (a) $ 679.81 million (b) 715.54 million (c) 769.23 million. 2. You want to earn a return of 11% on each of two stocks, A and B. Stock A is expected to pay a dividend of $3 in the upcoming year, while stock B is expected to pay a dividend of $2 in the upcoming year. The expected growth rate of dividends for both stocks is 4%. Using the constant growth DDM. The intrinsic value of stock A:. (a) will be higher than the value of stock B....(b) will be the same as the value of stock B....(c) will be less than the value of stock B