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Business, 04.07.2020 14:01 ImmortalEnigmaYT

Milton Industries expects free cash flow of $5 million each year. Milton's corporate tax rate is 35%, and its unlevered cost of capital is 15%. The firm also has outstanding debt of $19.05 million, and it expects to maintain this level of debt permanently. What is the value of Milton Industries without leverage? What is the value of Milton Industries with leverage?

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Milton Industries expects free cash flow of $5 million each year. Milton's corporate tax rate is 35%...
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