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XL Sports is expected to generate free cash flows of 112 million per year XL has permanent debt of 35 million a tax rate of 37 and an unlevered cost of capital of 104 a What is the value

XL Sports is expected to generate free cash flows of $11.2 million per year. XL has permanent debt of $35 million, a tax rate of 37%, and an unlevered cost of capital of 10.4%.
a. What is the value of XL’s equity using the APV method?
b. What is XL’s WACC? What is XL’s equity value using the WACC method?
c. If XL’s debt cost of capital is 4.6%, what is XL’s equity cost of capital?
d. What is XL’s equity value using the FTE method?

Jun 09 2021 View more View Less

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