Compressed Adjusted Present Value Biocentrics Inc.'s expected free cash flow and its future free cash flow growth rate is listed to the right. Biocentrics currently has no debt, and its cost of unlevered equity, rsu and tax rate is stated to the right. Use the compressed adjusted value approach to answer the following questions. a. Find Vu (5 points) b. Find VL and rst. if Biocentrics uses the debt amount and its cost listed to the right. (5 points) Use the APV model that allows for growth. c. Based on Vu from Part a, find VL and rs using the MM model (with taxes) if Biocentrics uses the amount of debt and cost of debt from part b. (5 points) d. Explain the difference between your answers to Parts b and c. (5 points) Please show work and answer questions completely to receive full credit. FCF = free cash flow FCF g = growth rate rsu = cost of unlevered equity T = tax rate Debt amount TD= cost of debt $ 450,000.00 3.00% 10.00% 35.00% 4000000 7.00% 29 30 a 31 32 b 33 34 35 C 36 37 38 d 39 40 41 42 Vu VL TSL VL using MM rSL using MM The difference betweeen the answers to parts b and c are as follows: Compressed Adjusted Present Value Biocentrics Inc.'s expected free cash flow and its future free cash flow growth rate is listed to the right. Biocentrics currently has no debt, and its cost of unlevered equity, rsu and tax rate is stated to the right. Use the compressed adjusted value approach to answer the following questions. a. Find Vu (5 points) b. Find VL and rst. if Biocentrics uses the debt amount and its cost listed to the right. (5 points) Use the APV model that allows for growth. c. Based on Vu from Part a, find VL and rs using the MM model (with taxes) if Biocentrics uses the amount of debt and cost of debt from part b. (5 points) d. Explain the difference between your answers to Parts b and c. (5 points) Please show work and answer questions completely to receive full credit. FCF = free cash flow FCF g = growth rate rsu = cost of unlevered equity T = tax rate Debt amount TD= cost of debt $ 450,000.00 3.00% 10.00% 35.00% 4000000 7.00% 29 30 a 31 32 b 33 34 35 C 36 37 38 d 39 40 41 42 Vu VL TSL VL using MM rSL using MM The difference betweeen the answers to parts b and c are as follows