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The following information is available for Omicron Industries. Omicron Industries' Market Value Balance Sheet ($ Millions) and Cost of Capital out of estion Cost of
The following information is available for Omicron Industries. Omicron Industries' Market Value Balance Sheet ($ Millions) and Cost of Capital out of estion Cost of Capital Assets Liabilities Cash 0 Debt 200 Debt 6% Other Assets 500 Equity 300 Equity 12% TC 35% Omicron Industries New Project Free Cash Flows Year 0 1 2 3 Free Cash Flows ($100) $40 $50 $60 Assume that this new project is of average risk for Omicron and that the firm wants to hold constant its debt to equity ratio. The unlevered value of Omicron's new project is closest to: Select one: O a $25 X b. $124 O c. $96 d. $126
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