Question: 1) (5 points) Consider the following data for Sangria Corp.: FCF = NOPAT = $1,50 (operating cash flow in perpetuity, g=0) ra = 0,10 ra

1) (5 points) Consider the following data for Sangria Corp.: FCF = NOPAT = $1,50 (operating cash flow in perpetuity, g=0) ra = 0,10 ra = 0,06 Tax rate = 30% D/(D+E) = 0,40. Assume rebalancing, i.e., constant capital structure Calculate the following: a) Vu b) VL c) Demonstrate that VL = PV (FCF) + PV (tax shields)

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