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You are provided with the following information for Adidas Ltd: Expected free cash flow for the year is R523582 In the future, free cash flow

You are provided with the following information for Adidas Ltd:

Expected free cash flow for the year is R523582

In the future, free cash flow is expected to grow at a rate of 7percent.

The company currently has no debt, and its cost of equity is 11percent. Tax rate is 28percent.

a) Find Vu.

b) AssumeAdidas uses R5268867in debt with a cost of 4.9percent.Based on Vuyou foundin part (a), find the following:

i) VL .

ii)Find rSL

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