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3. You are the only shareholder in a Pizza company financed entirely by equity The business generated $300,000 pre-tax cash flows each year The tax

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3. You are the only shareholder in a Pizza company financed entirely by equity The business generated $300,000 pre-tax cash flows each year The tax rate is 30% Equity Assume all CFs are perpetuities The ke=10% for your company You consider borrowing $1,000,000 at an interest rate of 6% a) What is the value of your company with and without debt? b) What is the WACC without debt

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