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Edelman s net cash flows for the next three years are projected at $ 7 2 , 0 0 0 , $ 7 8 ,

Edelmans net cash flows for the next three years are projected at $72,000, $78,000, and $84,000, respectively. After that, the cash flows are expected to increase by 3.2 percent annually. The after-tax cost of debt is 6.2 percent, and the cost of equity is 11.4 percent. What is the value of the firm if it is financed with 40 percent debt and 60 percent equity?

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