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. Data on a Levered Firm with Perpetual Cash Flows Item Value Item full name abbreviation FFCF $30.5 Firm free cash flow (or Cash Flow from Assets) (millions) g 2% pa Growth rate of OFCF rD 3% pa Cost of debt TEL 6% pa Cost of levered equity D/VL 35% pa Debt to assets ratio, where the asset value includes tax shields to 30% Corporate tax rate The current value of debt is O a. 446.63 O b. 672.03 O c. 405.12 O d. 361.86 O e. 1157.5A stock pays annual dividends. It just paid a dividend of $6. The growth rate in the dividend is 2% pa. You estimate that the stock's required return is 10% pa. Both the discount rate and growth rate are given as effective annual rates. Which of the following statements is NOT correct? 0 a. The share price at time t=0 is $75.00 0 b. The dividend at time t=3 will be $63672 O c. Total return of the stock is equal to the dividend yield plus the capital return. 0 d. The long-term capital return of the stock is 2% 0 e. Total return of the stock is equal to the company's long term cost of equity. You discover an investment costing $2,000 which has an expected total return of 13% pa, but a required return of only 9% pa. 0f the 13% pa total expected return, the capital return is expected to be 7% pa. Assume that the required return of 9% remains constant, the dividends can only be re-invested at 9% pa and all returns are given as effective annual rates. Which of the following statements is NOT correct? 0 a. You would use a discount rate of 13% to find the NPV of this investment 0 b. The investment's price at time t=20 would be $7,739.37 0 c. The expected dividend return is 6% 0 d. The investment is currently under-priced 0 e. When plotted on the Security Market Line, the investment would have a positive alpha