The free cash flows of MN Company are expected to be $28 million per year for ever. This firm has a permanent debt of $78 million, and an unlevered cost of capital of 10%. The corporate tax rate is 30%.

Answer the following. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

What is value of the unlevered company?	$
What is MNs cost of equity if the cost of debt is 6%?	%
What is the firms weighted average cost of capital (WACC)?	%
Using the WACC method, what is the value of MNs equity?	$
What is the total value of the company?	$
Using the adjusted present value method, calculate the effect of leverage on the total value of the firm?	$