What is the value of minos factorial with leverage

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Minos Factorial expects free cash flows of $15 million each year. Mino’s corporate tax rate is 20%, and its unlevered cost of capital is 10%. The firm also has outstanding debt of $30.0 million and expects to maintain this level of debt permanently. (Show your calculations)

a. What is the value of Minos Factorial without leverage?

b. What is the value of Minos Factorial with leverage?

Reference no: EM131979135

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