Jiminy Cricut Corp.s management expect that it will generate $600,000 of pre-tax free cash flow each year into perpetuity. The firms management target a debt-to-equity ratio of 0.75, and the firms marginal tax rate is 21.0%. JCCs common stock beta is 1.0, the risk-free rate is 2.0% and the expected return to the market portfolio of all risky assets is 8.0%. JCC borrows at a rate of 3.5% per year.

d. Using the APV approach, what is JCCs market value of stock, market value of bonds, and total market value? Do not refer to your answer in part c. or part e.

e. Using the cash flow to equity approach, what is JCCs market value of stock, market value of bonds, and total market value? Do not refer to your answer in part c. or part d.