General Electric wants to find the value of a Japanese firm. Pro-Forma income statement is given below: (All Yen figures below are in millions). Revenue Y 200 Costs Y (160) Depreciation Interest Y_(10) Y_(10) Pre-Tax After Tax Y 20 Y 12 It is expected that these cashflows will occur in perpetuity. Further, the depreciation amount will equal the capital expenditures throughout in the future. Unlevered cost of equity is 20% (in Yens). Interest rate on debt is 10% (in Yens). Today's spot rate is Yen 100/$. 33) Equity value is: a) $ 300,000 b) $ 540,000 c) $ 700,000 d) $ 739,500 e) none of the above 34) Debt value is: a) $ 100,000 b) $ 540,000 c) $ 739,500 d) $ 1,000,000 e) none of the above 35) Assume a different capital structure with a larger debt amount_say 5 million yens more than the amount assumed above. The firm value will increase by the following amount: a) $ 11,500 b) $ 20,000 c) $ 40,000 d) $ 43,000 e) none of the above General Electric wants to find the value of a Japanese firm. Pro-Forma income statement is given below: (All Yen figures below are in millions). Revenue Y 200 Costs Y (160) Depreciation Interest Y_(10) Y_(10) Pre-Tax After Tax Y 20 Y 12 It is expected that these cashflows will occur in perpetuity. Further, the depreciation amount will equal the capital expenditures throughout in the future. Unlevered cost of equity is 20% (in Yens). Interest rate on debt is 10% (in Yens). Today's spot rate is Yen 100/$. 33) Equity value is: a) $ 300,000 b) $ 540,000 c) $ 700,000 d) $ 739,500 e) none of the above 34) Debt value is: a) $ 100,000 b) $ 540,000 c) $ 739,500 d) $ 1,000,000 e) none of the above 35) Assume a different capital structure with a larger debt amount_say 5 million yens more than the amount assumed above. The firm value will increase by the following amount: a) $ 11,500 b) $ 20,000 c) $ 40,000 d) $ 43,000 e) none of the above