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Use the below information to value a levered company with annual perpetual cash flows from assets that grow. The next cash flow will be generated

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Use the below information to value a levered company with annual perpetual cash flows from assets that grow. The next cash flow will be generated in one year from now. Data on a Levered Firm with Perpetual Cash Flows Value Item full name Item abbreviation OFCF (millions) 8 In $7.3 2.5% pa 3.5% pa Operating free cash flow Growth rate of OFCF Cost of debt Cost of levered equity Equity to assets ratio, where the asset value includes tax shields Corporate tax rate TEL 9% pa 35% pa E/V te 30% The current value of levered equity is a. 211.59 O b. 31.35 O c. 156.25 O d. 113.94 e. 81.94

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