Schwarzentraub Corporations' expected free cash flow for the year is $650,000; in the future, free cash flow is expected to grow at a rate of 10%. The company currently has no debt, and its cost of equity is 14%. Its tax rate is 40%. Use the compressed adjusted value approach to answer the following questions. Do not round intermediate calculations.

1. Find VU. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places.
   $ million
   
   
2. Find VL if Schwarzentraub uses $6 million in debt with a cost of 6%. Use the APV model that allows for growth. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places.
   $ million
   
   Find rsL if Schwarzentraub uses $6 million in debt with a cost of 6%. Use the APV model that allows for growth. Round your answer to one decimal place.
   %
   
   
3. Based on VU from Part a, find VL using the MM model (with taxes) if Schwarzentraub uses $6 million in 6% debt. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places.
   $ million
   
   Based on VU from Part a, find rsL using the MM model (with taxes) if Schwarzentraub uses $6 million in 6% debt. Round your answer to one decimal place.
   %

THANK YOU

Scwarrentraub Corporation expected free cash flow for the year is $650,000, in the future, free cash flow is expected to grow rule of 10%. The company has to dett, and its coop 1 14%. its tax rate is 40%. Use the compressed adjusted value proach to answer the following question. Do not round intermediate con Find Vinter your answers in millions. For example, an answer of 10,550,000 should be entered as 10.55. Hound your rower to two decimal haces million b. Find Schwarzentres millon in debt with a cost of ox. Use the APV model that allows for growth. Enter your neers in milions. For example, want 510,60,000 hotte entered as 10.55. Round your answer to two decimal places. million Find ta if Schwarzertraut uses $6 million in debt with a cost of 6%. Use the APV model that allows for growth. Round your answer to one decimal place. $ c. Based on Vu from Porta, find using the MM model (with taxes) Schwarzentraub uses 16 million in debt. Enter your answers in millions. For example, we of $10,350,000 should be entered as 10.55. Round your answer to two decimal places $ million Based on Vy from Parta, find losing the model with taxes) i Schwarzentraub uses $6 million in debt. Round your answer to one decimal place