QUESTION 6 For this and the next 4 questions. American Designs (HD) is considering purchasing Brooklyn Systems (BS). Note that BS is the target firm. The following FCFs and interest payments are projected for BS, if the acquisition takes effect. FCF Interest charges

Years 1. $40,000 $15,000 2. 58,000. 12,500 3. 64,000 8,000 HD will apply the following estimation data in determining the value of BS: Unlevered cost of equity = 12.5%, tax rate = 40%, growth rate after Year 3 = 4%. Calculate the unlevered horizon value of operations (i.e. at the end of Year 3). $783,059 $676,299 $39,030 $715,329 $39,153 None of the above QUESTION 7 Calculate the horizon value interest tax savings $783,059 $676,299 $39,030 $715,329 $39,153 None of the above QUESTION 8 Calculate the unlevered present value of operations, today $783,059 $676,299 $39,030 $715,329 $39,153 None of the above QUESTION 9 Calculate the present value of interest tax savings, today $783,059 $676,299 $39,030 $715,329 $39,153 None of the above QUESTION 10 Calculate the value of operations today $783,059 $676,299 $39,030 $715,329 $39,153 None of the above