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:

Electrochemical Impulses

Electrical and chemical signals transmitted through neurons for communication within the brain and nervous system.

Neuron

One of billions of nerve cells in the central nervous system, especially in the brain.

Dendrites

The branched extensions of a neuron that receive signals from other neurons.

Sensory System

The part of the nervous system responsible for processing sensory information received from the environment.