MGS Corporation is expected to generate cash flows $10.9 million per year

MGS Corporation is expected to generate cash flows $10.9 million per year. MGS Corporation has a personal debt of $40 million at 5% cost,a tax rate of 26% and an unlevered cost of capital of 10%.(a) Calculate the value of MGS’s equity using the APV approach.(b) Calculate the value of WACC for the MGS(c) Calculate the value of MGS’s equity using WACC approach.(d) Calculate the value of MGS’s equity using FTE approach.

 

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