Use the Following Information to Answer the Question(s)below

question 1

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries is expected to generate free cash flows of $24 million per year.Galt has permanent debt of $80 million,a corporate tax rate of 21%,and an unlevered cost of capital of 12% and its cost of debt capital is 6%.
-The value of Galt's equity using the APV method is closest to:

• A)$137 million.
• B)$180 million.
• C)$230 million.
• D)$240 million.

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Definitions:

Work Units

Refers to the divisions within a workplace or the smallest identifiable groups working towards a common goal.

Performance Appraisal

A systematic evaluation of an employee's performance in their job, often including feedback and discussion of objectives.

Training Programs

Structured educational courses designed to impart specific skills, knowledge, or competencies, often for professional development purposes.

Strategic Objectives

Goals set by a business or organization to guide its strategy and drive toward long-term success.