What is the value of xl equity using the apv method

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Reference no: EM132620162

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

Reference no: EM132620162

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