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pls help me for this questions Part 1: Answer each of the following questions (5 marks) I. LL Corporation is expected to have EBIT of

pls help me for this questions

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Part 1: Answer each of the following questions (5 marks) I. LL Corporation is expected to have EBIT of $6.2M this year. LL Corporation is in the 40% tax bracket, will report $1.2M in depreciation, will make $1.4M in capital expenditures, and have a $160,000 increase in net working capital this year. What is LL's FCFF? 6,200,000 ( 6.2 x (1-40))4 1:2) - 1-4 - b. 6, 160,000 3,360,000 d. 3,680,000 3 C. 4,625,000 2. BB Corp. has a weighted average cost of capital equal to 5.5%. If the firm is financed with 25% equity and 75% debt and if the after-tax of that debt is 4%, then what is the cost of equity for the firm? 0.025 0.06 0.1 d. none of the above 3. EE, Inc. is financed with equal portions of debt and equity. The after-tax cost of debt is 6% and the cost of equity is 8%. If EE expects next year's free cash flow to be $25,000,000 with growth of 3% thereafter, what is the value of EE, Inc. to the nearest dollar? EE's marginal tax rate is 40%. The firm paid $8.75m in tax for income of $25m before tax last year. $357,142,857 $625,000,000 C. $833,333,333 d none of the above 4. ZZ had a FCFF of $4.5M last year. ZZ's cost of equity is 10% and WACC is 8.2%. If FCFF is expected to grow at 8% forever, the value of ZZ is $1054m $1080m $2635m $2430m none of the above CC Company has a debt-to-equity ratio of 25% and a marginal tax rate of 25%. The age unlevered B of comparable companies is 1.1. The levered B of the company ld be: 0.89. .16. 27. 31. MEl + 256

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