Schwarzentraub Industries' expected free cash flow for the year is $$550,000$; 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 $40\%.($Hint: Use the equations mentioned below.$)$

The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet: Adjusted Present Value

Expected free cash flow, CF $$550,000$

FCF growth rate, g $8\mathrm{.}00\%$

Cost of equity, rsU $12\mathrm{.}00\%$

Tax rate, T $40\mathrm{.}00\%$

Debt, D $$8,000,000$

Cost of debt, rd $9\mathrm{.}00\%$

No Debt Case: Formulas

VU $=$ #N$/$A

With Debt Case:

VL $=$ #N$/$A

S $=$ #N$/$A

rsL $=$ #N$/$A

MM Model $($With Ta$"$xes$)$

VL $=$ #N$/$A

S $=$ #N$/$A

rsL $=$ #N$/$A

Find VU$.$ Enter your answer in millions. For example, an answer of $$1\mathrm{.}21$ million should be entered as $1\mathrm{.}21,$ not $1,210,000.$ Do not round intermediate calculations. Round your answer to two decimal places.

$ fill in the blank $2$

million

Find VL if Schwarzentraub uses $$8$ million in debt with a cost of $9\%.$ Use the APV model that allows for growth. Enter your answer in millions. For example, an answer of $$1\mathrm{.}21$ million should be entered as $1\mathrm{.}21,$ not $1,210,000.$ Do not round intermediate calculations. Round your answer to two decimal places.

$ fill in the blank $3$

million

Find rsL$.$ Do not round intermediate calculations. Round your answer to one decimal place.

fill in the blank $4$

$\%$

Based on VU from part a$,$ find VL using the MM model $($with taxes$)$ if Schwarzentraub uses $$8$ million in $9\%$ debt. Enter your answer in millions. For example, an answer of $$1\mathrm{.}21$ million should be entered as $1\mathrm{.}21,$ not $1,210,000.$ Do not round intermediate calculations. Round your answer to two decimal places.

$ fill in the blank $5$

million

Find rsL$.$ Do not round intermediate calculations. Round your answer to one decimal place.

fill in the blank $6$

$\%$