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Please explain all steps Assume that a firm started up with $50,000,000 in capital, consisting of 40.0 percent debt at a before-tax cost of debt

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Please explain all steps

Assume that a firm started up with $50,000,000 in capital, consisting of 40.0 percent debt at a before-tax cost of debt of 6.0 percent, and 60.0 percent equity (1,000,000 shares) at a cost of equity of 16.4 percent, giving a WACC of 11.28%. Assume that the firm is expected to generate EBIT of $8,200,000 next year, which is then expected to grow at a long-run constant growth rate of 4.0 percent each year (in perpetuity), and that its tax rate is 40.0 percent. Given this information, and using the concept of free cash flows and enterprise value (you may assume that there is no depreciation and that no additional investment is made in net operating working capital, or gross fixed assets), determine the current market value added (MVA) on a per share basis

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