Question: Need help with this question You start a corporation. Your Idea starts to produce $100k cash flow from assets (free cash flow) at the end

Need help with this question
 Need help with this question You start a corporation. Your Idea

You start a corporation. Your Idea starts to produce $100k cash flow from assets (free cash flow) at the end of second year (t=2). The company's cash flow is expected to grow at 8% from year 3 to year 8, then grows by 4% annually forever after. The company pays out all the cash as dividend after meeting debt obligations. You don't have to consider tax in this question. a. Annual discount rate for the company is 10%. What's the value of the firm today? To begin production, you need $500K immediately which you will raise by issuing bonds. You issue a 20-year bond with annual coupon payment and face value $1 million. The annual YTM for bond Is 10%. What must be the annual coupon rate of the bond? c. An investor offers to buy 20% of ownership of the firm from you at t = 0, what is the lowest offer price that you are willing to accept? d. What is the annual (compound) capital gain rate if an investor buys a share of stock from you after dividend payment at year 20 and sells it after dividend payment at year 23

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