Question: Consider the following table which provides data for a levered rm. Assume annual cash flows will grow in perpetuity. Item Value Item full name abbreviation

Consider the following table which provides data
Consider the following table which provides data for a levered rm. Assume annual cash flows will grow in perpetuity. Item Value Item full name abbreviation OFCF {millions} $2.3 Operating free cash ow g Growth rate of OFCF 11) Cost of debt TEL Cost of levered equity EfVL Equity to assets ratio, where the asset 1.l'alue includes tax shields tE Corporate tax rate A. Calculate the current value of the levered firm {2 marks} B. Calculate the current value of the levered equity {1 mark] Type your answers in the text box below, ensuring that you clearly label each of the 2 answers (1\"- B}

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