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Finance 300: Introduction to Finance Homework: Homework 13 (Chapter 16) Question 20, P 16-29 (similar to) Part 1 of 2 > HW Score: 55%, 11 of 20 points Points: O of 1 Save Marpor Industries has no debt and expects to generate free cash flows of $17 million each year. Marpor believes that it it permanently increases its level of debt to $26.36 million, the risk of financial distress may cause it to lose some customers and receive less favourable terms from its suppliers As a result, Marpor's expected free cash flows with debt will be only $16 million per year. Suppose Marpor's tax rate is 25%, the risk-free rate is 4%, the expected return of the market is 16%, and the beta of Marpor's free cash flows is 1.1 (with or without leverage) a. Estimate Marpor's value without leverage. b. Eslimate Marpor's value with the new leverage: a. Estimate Marpor's value without leverage. Marpor's value without leverage is s million (Round to two decimal places.) Get more help Clear all Check answer 3:52 a 5 otv MacBook Air