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

question 84

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 40%,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)$150 million
• B)$180 million
• C)$230 million
• D)$240 million

---

Definitions:

Emotional Involvement

The degree to which an individual is emotionally engaged or invested in an activity, task, or relationship.

Jargon

Specialized language used by a particular profession or group, often difficult for outsiders to understand.

Intellectual Stimulation

The degree to which leaders encourage followers to think critically and independently, fostering innovation and creativity.

Exit Interviews

A process through which an organization gathers feedback from departing employees to improve work conditions and retain talent.