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You are given the following table showing the unlevered free cash flows of a firm and the annual interest expense. You are also given the
You are given the following table showing the unlevered free cash flows of a firm and the annual interest expense. You are also given the following data:
unlevered cost of capital = 12.50%
WACC = 10.20%
cost of net debt = 7%
corporate tax rate = 30%
Calculate the enterprise value using the APV method.
Year | 0 | 1 | 2 | 3 |
Unlevered free cash flow | $7,800 | $8,100 | $8,560 | |
Interest expense | $1,100 | $1,368 | $990 |
Group of answer choices
$21,189
$23,072
$18,772
$20,255
$22,376
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