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QUESTION 12 Suppose you borrow $40,528.08M when financing a gym with a cost of $91,803.11 M. You expect to generate a cash flow of $82,670.62M

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QUESTION 12 Suppose you borrow $40,528.08M when financing a gym with a cost of $91,803.11 M. You expect to generate a cash flow of $82,670.62M at the end of the year if demand is weak, $89,209.16M if demand is as expected and $114,627.04M if demand is strong. Each scenario is equally likely. The current risk-free interest rate is 4.59% (nisk of debt) and there's a 9.32% risk premium for the risk of the assets. What should the value of the equity be? (HINT: If you need it, to compute the WACC of the firm, add the risk free plus the risk premium) NOTE: Provide your answers in Millions. E.G. for 100M you must enter 100.0000, for 20M you must enter 20.0000, etc

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