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

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Use the below information to value the debt in 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 $30.5 Firm free cash flow (or Cash Flow from Assets) FFCF (millions) g 2% pa Growth rate of OFCF | 3% pa Cost of debt PEL 6% pa Cost of levered equity DNL 35% pa Debt to assets ratio, where the asset value includes tax shields Ito 30% Corporate tax rate The current value of debt is . 446.63 O b. 672.03 O c. 405.12 O d. 361.86 O e. 1157.5

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