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please solve #10 9. A firm expects unlevered free cash flow of $10 million each year. Its unlevered cost of capital is 10%. The firm
please solve #10
9. A firm expects unlevered free cash flow of $10 million each year. Its unlevered cost of capital is 10%. The firm also has outstanding debt of $35 million, and it expects to maintain this debt level permanently. There are no corporate taxes or other market imperfections. Calculate the firm's Oralue without leverage. A) \$350 million B) $100 million firm value = Cashflow/ unlevered cost of capital C) \$250 million =10,000,000/.1=100,000,000 D) $200 million E) $150 million 10. Using information in question 9 , what would be the firm's value with the $35 million of debt? How much is the equity worth in this caseStep by Step Solution
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