Schwarzentraub Corporations' expected free cash flow for the year is $500,000; in the future, free cash flow is expected to grow at a rate of 8%. The company currently has no debt, and its cost of equity is 12%. Its tax rate is 40%. Use the compressed adjusted value approach to answer the following questions. Do not round intermediate calculations.

1. Find V_U. 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 V_L if Schwarzentraub uses $5 million in debt with a cost of 7%. 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 r_sL if Schwarzentraub uses $5 million in debt with a cost of 7%. Use the APV model that allows for growth. Round your answer to one decimal place. %
3. Based on V_U from Part a, find V_L using the MM model (with taxes) if Schwarzentraub uses $5 million in 7% 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 V_U from Part a, find r_sL using the MM model (with taxes) if Schwarzentraub uses $5 million in 7% debt. Round your answer to one decimal place. %