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Milton Industries expects free cash flows of $ 8 million each year.​ Milton's corporate tax rate...

Milton Industries expects free cash flows of $ 8 million each year.​ Milton's corporate tax rate is 40 %​, and its unlevered cost of capital is 13 %. Milton also has outstanding debt of $ 33.57 ​million, and it expects to maintain this level of debt permanently. a. What is the value of Milton Industries without​ leverage? b. What is the value of Milton Industries with​ leverage?

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jeff jeffy answered 4 months ago
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