Milton Industries expects free cash flow of $ 14 million each year. Milton's corporate tax rate is 30 %, and its unlevered cost of capital is 9 % . Milton also has outstanding debt of $ 95.62 million, and it expects to maintain this level of debt permanently.
a. What is the value of Milton Industries without leverage?
b. What is the value of Milton Industries with leverage?
a. What is the value of Milton Industries without leverage? The value of Milton Industries without leverage is $ nothing million. (Round to two decimal places.)
b. What is the value of Milton Industries with leverage? The value of Milton Industries with leverage is $nothing million. (Round to two decimal places.)