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Milton Industries expects free cash flow of $7 million each year.Milton's corporate tax rate is 21%, and its unlevered cost of capital is 11%. Milton

Milton Industries expects free cash flow of $7 million each year.Milton's corporate tax rate is 21%, and its unlevered cost of capital is 11%. Milton also has outstanding debt of $41.78 million, and it expects to maintain this level of debt permanently.

a. What is the value of Milton Industries withoutleverage?

The value of Milton Industries without leverage is $.................million. (Round to two decimalplaces.)

b. What is the value of Milton Industries withleverage?

The value of Milton Industries with leverage is $...................million. (Round to two decimalplaces.)

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