Milton Industries expects free cash flow of $7 million each year. Milton's corporate tax rate is 30%, and its unlevered cost of capital is 10%. Milton also has outstanding debt of $49.32 million, and it expects to maintain this level of debt permanently.
a. What is the value of Milton Industries without leverage? The value of Milton Industries without leverage is _____________million. (Round to two decimal places.)
b. What is the value of Milton Industries with leverage? The value of Milton Industries with leverage is _______________million. (Round to two decimal places.)