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XL Sports is expected to generate free cash flows of $11.2 million per year. XL has a permanent debt of $35 million, a tax rate
- XL Sports is expected to generate free cash flows of $11.2 million per year. XL has a permanent debt of $35 million, a tax rate of 37%, and an unleveled cost of capital of 10.4%.
- a. What is the value of XL’s equity using the APV method?
- b. What is XL’s WACC? What is XL’s equity value using the WACC method?
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ANS a Computation of value of XLs equity using the APV method Value of Unlevered Firm F...
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Corporate Finance
Authors: Jonathan Berk and Peter DeMarzo
3rd edition
978-0132992473, 132992477, 978-0133097894
