A company has a market value of equity of $465,710, and a market
value of debt of $391,540. The company's levered cash flow (i.e.
cash flow after paying all interest) is $75,795 and is distributed
annually as dividends in full. The interest rate on the debt is
9.22%. You own $59,230 worth of the market value of the company's
equity. Assume that the cash flow is constant in perpetuity, there
are no taxes, and you can borrow at the same...