Chapter 07 HW Seved 4 Consider the table given below to answer the following question. 20 points Skipped Asset value Earnings Net Investment Free cash flow (CF) Return on equity (ROE) Asset growth rate Earnings growth rate Year 1 2 7 8 9 10 12.00 13.44 15.05 16.86 18.38 20.03 21.83 23.14 24.53 26.00 1.44 1.61 1.81 2.02 2.21 2.30 2.40 1.44 1.96 2.08 1.61 1.81 1.52 1.65 1.30 1.31 1.39 1.47 1.56 0.51 0.55 0.58 1.09 1.64 0.49 2.12 0.12 0.12 0.12 0.52 0.12 0.115 0.08 0.11 0.105 0.12 0.08 0.12 8.12 0.09 2.09 9.09 0.26 0.06 2.06 0.06 0.12 0.12 0.09 0.84 0.04 0.01 -0.19 0.12 0.00 ebook Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6. 11% in year 7. 10.5% in year 8 and 8% in year 9 and all later years. What is the value of the concatenator business? Assume 11% cost of capital (Do not round Intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Print Present value million References