Question 7 (1 point) Avon Airlines plans to maintain its debt at 30% of capital structure. Its tax effective rate is 40%. You are helping them to understand what the company may be worth if they go public You believe debt holders will require a return of 6% and shareholders will require a minimum return of 11% 5 6 8 9 If the company's free cash flow available to all stakeholders is $38 million per year growing at 4% annually, what is the total value of the business? 11 12 1) $794.98 million 2) $542.85 million 3) $345.45 million 4) $201.78 million