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Question 13 2 pts Rumolt Industries expects free cash flows of $7 million each year. Rumolt's corporate tax rate is 25%, and its unlevered cost
Question 13 2 pts Rumolt Industries expects free cash flows of $7 million each year. Rumolt's corporate tax rate is 25%, and its unlevered cost of capital is 14%. Rumolt also has outstanding debt of $16.4 million, and it expects to maintain this level of debt permanently. a. What is the value of Rumolt Industries without leverage? Answer: The value of Rumolt Industries without leverage is $ million. (Round to two decimal places.) b. What is the value of Rumolt Industries with leverage? Answer: The value of Rumolt Industries with leverage is $ million. (Round to two decimal places.)
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