just didnt understand number F

Capital Structure and WACC 1 Lone Star Industries has a debt to equity ratio of 2/3. The required return on the firm's unlevered equity is 16%, and the pre-tax cost of debt is 10%. Sales revenue is expected to remain the same in perpetuity at last year's level of $19,740,000. Variable costs are 60% of sales, and Lone Star is taxed at the corporate rate of 40% a f Lone Star were financed by 100% equity, how much would the firm be worth? (Hint: Think how M&M would value the firm.) b. Considering that the firm's debt-to-equity is 2/3rd, what is the firm's cost of leveraged equity? Neveraged equity = runleveraged equity + (D/E)(ruleveraged equity - eb) (1 - Te) c. What is the leveraged firm's WACC? rware = [D/(D+E)](1 - Tc) r) + [E/ (D+E)]re d. Calculate the value of the firm. (Again think M&M) e. How much of this value is debt and equity? f. How much cash flow each year do the shareholders have a claim on? Given these cash flows and the cost of equity, how much is the firm's equity worth (show your calculation). (Hint: calculate the after tax cash flows that shareholders would get). Capital Structure and WACC 1 Lone Star Industries has a debt to equity ratio of 2/3. The required return on the firm's unlevered equity is 16%, and the pre-tax cost of debt is 10%. Sales revenue is expected to remain the same in perpetuity at last year's level of $19,740,000. Variable costs are 60% of sales, and Lone Star is taxed at the corporate rate of 40% a f Lone Star were financed by 100% equity, how much would the firm be worth? (Hint: Think how M&M would value the firm.) b. Considering that the firm's debt-to-equity is 2/3rd, what is the firm's cost of leveraged equity? Neveraged equity = runleveraged equity + (D/E)(ruleveraged equity - eb) (1 - Te) c. What is the leveraged firm's WACC? rware = [D/(D+E)](1 - Tc) r) + [E/ (D+E)]re d. Calculate the value of the firm. (Again think M&M) e. How much of this value is debt and equity? f. How much cash flow each year do the shareholders have a claim on? Given these cash flows and the cost of equity, how much is the firm's equity worth (show your calculation). (Hint: calculate the after tax cash flows that shareholders would get)