What is the value of milton industries with leverage

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Reference no: EM131980598

Milton Industries expects free cash flow of $7 million each year. Milton's corporate tax rate is 30%, and its unlevered cost of capital is 10%. Milton also has outstanding debt of $49.32 million, and it expects to maintain this level of debt permanently.

a. What is the value of Milton Industries without leverage? The value of Milton Industries without leverage is _____________million. (Round to two decimal places.)

b. What is the value of Milton Industries with leverage? The value of Milton Industries with leverage is _______________million. (Round to two decimal places.)

Reference no: EM131980598

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