Question: 6. You are using the Adjusted Present Value approach to value the Greenside Co., and you have determined that the value of the unlevered firm
6. You are using the Adjusted Present Value approach to value the Greenside Co., and you have determined that the value of the unlevered firm is $22,105,137. You calculate the projected interest tax savings to be as follows: Year 1: $250,000 Year 2: $200,000 Year 3: $175,000 Year 4 and thereafter: $150,000 Assuming the cost of debt is 6% and the tax rate is 24%, what is the enterprise value of Greenside? a. $12.4 million b. $22.1 million c. $34.5 million d. None of the above
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