Paragraph 13 Styles 3 3. (10 pt) Pavos Inc. has EBIT of $30m every year forever. The firm is funded with $80m of debt and the rest with equity. The firm's cost of debt is 5%. If Pavos were an all-equity firm, its cost of capital would be 10%. Its corporate tax rate is 30%. Financial distress cost is assumed to be zero. O What is Pavos' unlevered cash flow per year? (1 pt) () What is Pavos' levered cash flow per year? (1 pt) (iii) Calculate Pavos' firm value using the APV approach. (3 pt) (iv) What is Pavos's WACC? (3 pt) (v) Calculate Pavos' firm value using the WACC approach. (2 pt) Droo ish (United States) O