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Firm A is evaluating the potential acquisition of Firm B . Evaluation will be based on the capital structure and synergies expected after the acquisition.
Firm A is evaluating the potential acquisition of Firm B Evaluation will be based on the capital structure and synergies expected after the acquisition. Firm B will have expected free cash flow of million, million and million in Year Year and Year respectively. After years, firm B is growing at growth rate.
Unlevered cost of equity is and tax rate is
Using APV model, what is the unlevered firm value of Firm B
$
$
$
$
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