Question 1 Use the below information to value the debt in a levered company with annual perpetual cash flows from assets that grow. The next cash flow will be generated in one year from now. Not yet saved Marked out of 4.00 Data on a Levered Firm with Perpetual Cash Flows Flag question Value Item full name Item abbreviation $4.5 Firm free cash flow (or Cash Flow from Assets) FFCF (millions) g 2% pa Growth rate of OFCF 3% pa Cost of debt TEL D/VL 9.5% pa Cost of levered equity 60% pa Debt to assets ratio, where the asset value includes tax shields 30% Corporate tax rate to The current value of debt is O a. 75.00 O b. 88.24 O c. 43.63 O d. 147.06 O e. 50.00