Title Paragraph Styles 4. (10 pt) Emerald Corporation has EBIT of $10m every year in perpetuity. The firm is funded with $50m debt and the rest with equity. Its cost of debt is 4% and WACC is 7%. Corporate tax rate is 30%. The only financing side effect is debt tax shield. What is Emerald's unlevered cash flow per year (1 pt) 10*(1-30)=7 (ii) What is Emerald's levered cash flow per year (2 pt) 10-X (iii) Use either the APV approach or the WACC approach to find Emerald's firm value. (3 pt) (iv) Based on the information given in the question and your answers in (-i), find Emerald's unlevered cost of capital (RA). (4 pt) glish (United States) it w