UBC Assignment 7: Firm Valuation (239)6.0 G 2. Suppose now that Bell Cana X * Worksheet for Assignment 9 Fi | + C canvas.ubc.ca/courses/77816/assignments/1087866 ... Portfolio Holding... Worksheet for Assignment 7 Firm Valuation.docx Download Info Close ents Assignment 7: Firm Valuation Page 1 of 2 ZOOM + Q 1. Bell Canada is an all equity firm and has expected EBIT of $40M in 2022, which will grow 4% per year in perpetuity. Its capital expenditures and depreciation are negligible, it pays taxes at 30%, pays all cash flow it generates in dividends, and its cost of capital is 8% per year. What is Bell Canada's value as of 2021? 60% -K/s 2. Suppose now that Bell Canada issues $200M in perpetual debt at 6% per year in 2021 (and will maintain its debt at this level), paying the proceeds to shareholders as a dividend. Which method is easiest to value this levered firm and why? Use this method to estimate Bell Canada's levered value. i-gpa OKIS 60%) OK's 19:35 2021/11/24 UBC Assignment 7: Firm Valuation (239)6.0 G 2. Suppose now that Bell Cana X * Worksheet for Assignment 9 Fi | + C canvas.ubc.ca/courses/77816/assignments/1087866 Portfolio Holding... Worksheet for Assignment 7 Firm Valuation.docx signments Assignment 7: Firm Valuation Page < 2 of 2 Q ... Close Download Info ZOOM + 3. Suppose instead that Bell Canada issues debt in 2021 to establish a capital structure with a constant debt-to-value ratio of 25.32% that it will maintain in the future. Which method is easiest to value this levered firm and why? Use this method to estimate Bell Canada's levered value. i-gpa 62% + - K/s OKIS 62%) OK's 19:35 2021/11/24