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Question 1 Use the below information to value the debt in a levered company with annual perpetual cash flows from assets that grow. The next cash flow will be generated in one year from now. Not yet saved Marked out of 4.00 Flag question Data on a Levered Firm with Perpetual Cash Flows Item Value Item full name abbreviation FFCF (millions) $10.6 Firm free cash flow (or Cash Flow from Assets) g 2% pa Growth rate of OFCF Cost of debt ID 3% pa TEL 7% pa D/L Cost of levered equity 40% pa Debt to assets ratio, where the asset value includes tax shields to 30% Corporate tax rate The current value of debt is O a. 348.68 O b. 145.63 O c. 187.06 O d. 139.47 O e. 124.71