Schwarzentraub Industries expected free cash flow for the year is $500,000; in the future, free cash flow

Question:

Schwarzentraub Industries’ expected for the year is $500,000; in the future, is expected to grow at a rate of 9%. The company currently has no debt, and its is 13%. Its tax rate is 40%.
a. Find VU.
b. Find VL and rsL if Schwarzentraub uses $5 million iii debt with a cost of 7%. Use the extension of the MM model that allows for growth.
c. Based on VU from part a, find VL and rsL, using the MM model (with taxes) if Schwarzentraub uses $5 million in 7% debt.
d. Explain the difference between your answers to parts b and c.

Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the... Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...