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Tire manufacturer NeverFlat Corp. posts revenue of $180 million on costs of $131 million every year. Its marginal tax rate is 31.0%. Without any debt,

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Tire manufacturer NeverFlat Corp. posts revenue of $180 million on costs of $131 million every year. Its marginal tax rate is 31.0%. Without any debt, its cost of capital is 11.0%. There are 6.0 million shares outstanding. PART A: Compute the value of the unlevered firm under the assumption that firm performance will be the same every year. $ million. (Round to 2 decimal places.) PART B: The firm issues $46.0 million of permanent debt at 5.1% to finance some needed capital expenses. Compute the tax savings per year to the firm from issuing the debt. $ million. (Round to 3 decimal places.) PART C: Compute the levered value of the firm. $ million. (Round to 2 decimal places.) PART D: What is the fair share price of the levered firm? $ (Round to 2 decimal places.)

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