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-..um. VUUIC IU: Cnapters 12 and 14 - Cost of Capital an 8 of 145 completa) P14-5 (similar to) Score: 0 of 1 pt Save

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-..um. VUUIC IU: Cnapters 12 and 14 - Cost of Capital an 8 of 145 completa) P14-5 (similar to) Score: 0 of 1 pt Save HW Score: 28.57%, 4 of 14 pts Question Help Suppose there are not Firm ABC has no debt and firm XYZ has debt of $4.000 on which payo interest of 10% each year. Both companies have identical projects that generale free cash flows of $4,300 or $4,200 each year. After paying any interest on debt, both companies to remaining tree cash flow to pay dividends each year. a. In the table below, in the debt payments for each firm and the dividend payments the guy holders of each tem will receive given each of the two possibile vis of free cash flows b. Suppose you hold 10% of the equity of ABC. What is another portfolio you could hold that would provide the same cash flow? 6. Suppose you hold 10% of the equity of XYZ W you can borrow of 10% what is an alternative strategy that would provide the same cash fows? a. In the table below, in the debt payments for each firm and the dividend payments the equity holders of each firm will receive given each of the two possible levels of free cash flows (Round all answers to the nearest dollar) ABC XYZ FCF Debt Payments Equity Dividends Debt Payments Equity Dividende $4,300 $4,200 $

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