Question: This is a subjective question, hence you have to write your answer in the Text-Field given below. As a treasury analyst, you are trying to

This is a subjective question, hence you have to write your answer in the Text-Field given below. As a treasury analyst, you are trying to value a potential target company X Co. The capital structure ratio (DE) currently for X Co. is 70The tepesi analysis between X Co.'s stock returns and market returns returned a coefficient of 2.5 for the market returns. The corporate wat is 29%. TheYT Indian government t-bill is 6%, and the market risk premium is 9%. The beta of debt is negligible. The FCFF projections are Rs. 250 million for Year 1, growing at 5% per annum from Year 1 to Year 3 (ie. 1-2, 23). Beyond three years. FCFF Sex XCo. will grow at a constant rate of 2% per annum till perpetuity. The existing debt outstanding is Rs. 2500 million (considered a parader). The book rating is B. The direct and indirect expected cost of bankruptcy is assumed to be 35% of the unlevered firm value. calculate the vote ved fim in Rs. million. [10] Bond rating Default rate B- 32.5% B 26.36% DAGANTI
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