RC Enterprises expected to have free cash flow in the coming year of $10 million, and this free cash flow is expected to grow at a rate of 4% per year thereafter. IRC has an equity cost of capital of 12%, a debt cost of capital of 7%, and it is in the 25% corporate tax bracket. Assume that IRC maintains a 1.5 debt to equity ratio.

1. the unlevered (an all equity) value of IRC in million dollars is closest to:

2. what is the value of IRC as a levered firm in million dollars?