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9-6 ENTERPRISE VALUATION-APV MODEL This problem uses the information from Problem 9-4 about Canton Corporation to estimate the firm's enterprise value using the APV model.

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9-6 ENTERPRISE VALUATION-APV MODEL This problem uses the information from Problem 9-4 about Canton Corporation to estimate the firm's enterprise value using the APV model. a. What is the firm's unlevered cost of equity? (Hint: The firm's debt beta is 20) b. What are the unlevered FCFs for Canton for years 1 through 4? (Hint: The unle- vered FCFs are the same as the firm FCFs.) c. What are the interest tax savings for Canton for years 1 through 4

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