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Question Help Kohwe Corporation plans to issue equity to raise $60 million to finance a new investment. After making the investment. Kohwe expects to earn free cash flow of $15 milion each you. Kowe currently has 5 milion shares outstanding, and it has to other assets or opportunities. Suppose the appropriate discount rate for Kohwe's future free cash flows is 6%, and the only capital market imperfections we corporate taxes and financial stress costs What is the NPV of Kohwe's investment? b. What is Kowe's share price today? Suppose Kohwe borrow the $60 million instead. The fem will pay interest only on this boan each year, and it will maintain an outstanding balance of $60 million on the loan Suppose that Kowe's corporate tax rate le c. What is Kohwe's share price today if the investment is financed with debt? Now suppose that with everage, Kohwe's expected free cash flows will decine to $10 million per year due to reduced sales and other financial distress costs. Assume that the appropriate discount rate for Kohwe's future free cash flows is still 6% d. What is Kowe's share price today given the financial distress costs of loverage? a. What is the NPV of Kohwe's Investment? Tho NPV is Smillon. (Round to ona decimal place) b. What is Kohwe's share price today? The price today is $pere. (Round to the nearescent) Suppose Kohwe borrow the 360 milion instead. The firm will pay interest only on this toan each year, and it will maintain an outstanding balance of $80 million on the loan. Suppose that we's corporate taxe 35%, and expected free cash flows are still $11 milion each year. What is Kowe's share price today if the investment is financed with debt? Kowe's share price today, the investment is financed with debtis per share (Round to the nearest cent) Now suppose that with everage, Kohwe's expected from cash flows will decline to $10 million per year due to reduced sales and other francul distress coss Assume that the coropriate discount rate for Kow's future free cash flown is still 6% d. What is Kowe's share price today given the financial distress costs of leverage? Kowe share price foday given the Financial distress costs of leverage in sper share. (Round to the nearest cont) Enter your answer in each of the answer boxes