Use the Information for the Question(s)below

question 22

Multiple Choice

Use the information for the question(s) below.
Shepard Industries expects free cash flow of $10 million each year.Shepard's corporate tax rate is 21%,and its unlevered cost of equity is 10%.The firm also has outstanding debt of $40 million and it expects to maintain amount of debt permanently.
-The value of Shepard Industries with leverage is closest to:

• A)$64 million.
• B)$100 million.
• C)$135 million.
• D)$108.4 million.

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Definitions:

Work on Adults

The process, methods, or interventions designed to address psychological, emotional, or behavioral issues in adult individuals.

Analytic Work

Involves examining and interpreting the underlying meaning or patterns in data, texts, or behaviors, often used in psychoanalytic contexts.

Children

Young humans, typically defined as persons under the age of 18, characterized by rapid physical, cognitive, and emotional development.

Anal Stage

The second stage in Freud's psychoanalytic theory of personality development, occurring roughly between the ages of 18 months and three years, where the focus of pleasure is on the anus and bowel movements.