Find the value of levered equity today

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Reference no: EM131962877

A joint venture consortium is formed today (on date 0) as s stand-alone company. The company will be liquidated after one year (on date 1) with expected financial on date 1 as shown below.

revenue $800 million

cost of goods ($500 million)

depreciation ($100 million )

Operating Income $200 million

Tax rate is 40%. Cost of unlevered equity is 15%. Debt $100 million

Interest rate 10%

Find the value of levered equity today.

Reference no: EM131962877

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