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Milton Industries expects free cash flows of $5 million each year. Milton's corporate tax rate is 35%, and its unlevered cost of capital is 15%.

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Milton Industries expects free cash flows of $5 million each year. Milton's corporate tax rate is 35%, and its unlevered cost of capital is 15%. Milton also has outstanding debt of $19.05 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

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