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Chipotle expects to earn a free cash flow of $500 in 1 year; further, these cash flows are expected to grow at a rate of

Chipotle expects to earn a free cash flow of $500 in 1 year; further, these cash flows are expected to grow at a rate of 3% forever. The discount rate on the burrito assets is 15%. Chipotle also has debt outstanding worth $1000. The debt has a maturity of 1 year, an annual interest rate of 10%, and a yield-to-maturity of 7%. After the debt matures in 1 year, Chipotle will not issue more debt. What is the value of Chipotle if its tax rate is 40%?

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