7. The following provides the basis for performing a valuation using the adjusted present value (APV) approach: Year 0 1 2 3 100 120 Free cash flow ($million) Debt ($million) 4 and beyond 200 50 200 150 180 50 100 Additionally, assume an unlevered cost of equity of 12%, a pre-tax borrowing rate of 8%, and a tax rate of 30%. a. What is the value of the unlevered firm? b. What is the value of the firm's interest tax savings, assuming that they remain constant since year 4? What is the value of the levered firm? C. Suppose the firm has 155 million shares outstanding. What is the value of equity per share? 7. The following provides the basis for performing a valuation using the adjusted present value (APV) approach: Year 0 1 2 3 100 120 Free cash flow ($million) Debt ($million) 4 and beyond 200 50 200 150 180 50 100 Additionally, assume an unlevered cost of equity of 12%, a pre-tax borrowing rate of 8%, and a tax rate of 30%. a. What is the value of the unlevered firm? b. What is the value of the firm's interest tax savings, assuming that they remain constant since year 4? What is the value of the levered firm? C. Suppose the firm has 155 million shares outstanding. What is the value of equity per share