Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter. Flagstaff has an equity cost of capital of 13%, a debt cost of capital of 7%, and it is in the 35% corporate tax bracket. Flagstaff maintains a 0.5 debt to equity ratio

A) What is the enterprise value of Flagstaff if it was an all equity firm?

B) What is the enterprise value of Flagstaff as a levered firm?

C) What is the present value of the interest tax shield if the firm maintain the same debt to-equity ratio?