A joint venture consortium is formed today (on date 0) as s stand-alone company. The company will be liquidated after one year (on date 1) with expected financial on date 1 as shown below.
revenue $800 million
cost of goods ($500 million)
depreciation ($100 million )
Operating Income $200 million
Tax rate is 40%. Cost of unlevered equity is 15%. Debt $100 million
Interest rate 10%
Find the value of levered equity today.