Intro An equity-only firm is valued at $200 million and has a beta of 1.4. One of its suppliers has asked the firm for a 1-year loan. The supplier wants to borrow $60 millon and pay back $62.1 million next year. The risk-free rate is 3% and the equity premium is 4%. Part 1 Attempt 1/10 for 10 pts. Without the loan and assuming constant cash flows, what is the expected cash flow per year? 1+ decimals Submit Attempt 1/10 for 10 pts. Part 2 What is the value of the firm with the loan (in $ million)? 0+ decimals Submit Part 3 - Attempt 1/10 for 10 pts. What is the new cost of capital after extending the loan? 3+ decimals Intro An equity-only firm is valued at $200 million and has a beta of 1.4. One of its suppliers has asked the firm for a 1-year loan. The supplier wants to borrow $60 millon and pay back $62.1 million next year. The risk-free rate is 3% and the equity premium is 4%. Part 1 Attempt 1/10 for 10 pts. Without the loan and assuming constant cash flows, what is the expected cash flow per year? 1+ decimals Submit Attempt 1/10 for 10 pts. Part 2 What is the value of the firm with the loan (in $ million)? 0+ decimals Submit Part 3 - Attempt 1/10 for 10 pts. What is the new cost of capital after extending the loan? 3+ decimals