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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 Item Value Item full name abbreviation FFCF $30.5 Firm free cash flow for Cash Flow from Assets) (millions) 9 2% pa Growth rate of OFCF FO 3% pa Cost of debt TEL 6% pa Cost of levered equity D/VA 35% pa Debt to assets ratio, where the asset value includes tax Shields le 30% Corporate tax rate The current value of debt is O405.12 b. 446.63 c. 672.03 d. 361.86 o. 1157,5 Clear my choice

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