Question
quiz 8 Q.7 Milton Industries expects free cash flow of $5 million each year. Milton's corporate tax rate is 21%, and its unlevered cost of
quiz 8
Q.7 Milton Industries expects free cash flow of $5 million each year. Milton's corporate tax rate is 21%, and its unlevered cost of capital is 15%.
Milton also has outstanding debt of $19.05 million, and it expects to maintain this level of debt permanently.
a. What is the value of Milton Industries without leverage?
b. What is the value of Milton Industries with leverage?
a. What is the value of Milton Industries without leverage?
The value of Milton Industries without leverage is $_______million. (Round to two decimal places.)
b. What is the value of Milton Industries with leverage?
The value of Milton Industries with leverage is $_______million. (Round to two decimal places.)
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Corporate Finance For Dummies
Authors: Michael Taillard
1st Edition
1118412796, 978-1118412794
