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Use the below information to value the debt in a levered company with annual perpetual...

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Use the below information to value the debt in a levered company with annual perpetual cash flows from assets that grow. The next cash flow will be generated in one year from now. Data on a Levered Firm with Perpetual Cash Flows Value Item full name Item abbreviation $10.6 Firm free cash flow (or Cash Flow from Assets) FFCF (millions) 2% pa Growth rate of OFCF 3% pa Cost of debt TEL 7% pa Cost of levered equity DNL 40% pa Debt to assets ratio, where the asset value includes tax shields Ito 30% Corporate tax rate The current value of debt is a. 124.71 b. 145.63 O c. 348.68 d. 187.06 e. 139.47

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