P 14-5 (similar to) Question Help Suppose there are no taxes. Fimm ABC has no debt, and firm XYZ has debt of $6,000 on which it pays interest of 10% each year. Both companies have identical projects that generate free cash flows of $5,500 or $6,100 each year. After paying any interest on debt, both companies use all remaining free cash flows to pay dividends each year. a. In the table below, in the debt payments for each firm and the dividend payments the equity holders of each firm will receive given each of the two possible levels of free cash flow b. Suppose you hold 10% of the equity of ABC: What is another portfolo you could hold that would provide the same cash flows? c. Suppose you hold 10% of the equity of XYZ If you can borrow at 10%, what is an alternative strategy that would provide the same cash flow? a. In the table below, it in the debt payments for each firm and the dividend payments the equity holders of each firm will receive given each of the two possible levels of free cash flow (Round all answers to the nearest dollar) ABC XYZ FCF Debt Payments Equity Dividends Debt Payments Equity Dividends $6,500 $6,100 Enter your answer in the edit fields and then click Check Answer Check Clear All 2 parto remaining Type here to search RE Address