The BIM Corporation has $40 million of 5% perpetual debt. The company expects to generate $10.9 million of earnings before interest and taxes per year in perpetuity. It distributes all its earnings as dividends at the end of each year. The firm's unlevered cost of equity is 10 percent, and the corporate tax rate is 40 percent.

a.What is the firm value of BIM using the APV method? (4 marks)

b. What is BIM's levered cost of equity? (4 marks)

C. What is BIM's WACC? What is the firm value using the WACC method? (4 marks)

d. What is BIM's equity value using the FTE method? (4 marks)