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Milton Industries expects free cash flow of $10 million each year. Milton's corporate tax rate is 38%, and its unlevered cost of capital is 10%.

Milton Industries expects free cash flow of $10 million each year. Milton's corporate tax rate is 38%, and its unlevered cost of capital is 10%. Milton also has an outstanding debt of $50.45 million, and it expects to maintain this level of debt permanently.

. What is the value of Milton Industries without leverage? b. What is the value of Milton Industries with leverage?

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