Question: This is all the information that was given for the problem Consider a project of the Cornell Haul Moving Company, the timing and size of

 This is all the information that was given for the problem

This is all the information that was given for the problem

Consider a project of the Cornell Haul Moving Company, the timing and size of the incremental after-tax cash flows (for an all-equity firm) are shown below in millions: 0 1 2 3 -$990 +$125 +$225 +$375 +$500 The firm's tax rate is 34 percent; the firm's bonds trade with a yield to maturity of 8 percent; the current and target debt-equity ratio is 3; If the firm were financed entirely with equity, the required return would be 10 percent. Using the flow to equity methodology, what is the value of the equity claim? Multiple Choice O $36,580,767.55 O $30,716,236.13 O -$1,540,000 O $446,570,866.00

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