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Milton Industries expects free cash flow of $6 million each year. Milton's corporate tax rate is 38%, and its unlevered cost of capital is 15%.

Milton Industries expects free cash flow of $6 million each year. Milton's corporate tax rate is 38%, and its unlevered cost of capital is 15%. Milton also has outstanding debt of $20.94

million, and it expects to maintain this level of debt permanently.

a. What is the value of Milton Industries without leverage?

b. What is the value of Milton Industries with leverage?

Please answer both questions for a thumbs up.

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