Use the Information for the Question(s)below

question 89

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 without leverage is closest to:

• A)$114 million.
• B)$50 million.
• C)$100 million.
• D)$64 million.

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Definitions:

Maximum Clench

The maximum force that one can apply by pressing their teeth together, often used in dentistry.

Conduction Failure

The inability of nerves to transmit signals effectively, which can lead to various neurological symptoms and dysfunction.

Lactic Acid

An organic compound produced in muscles during strenuous exercise when oxygen levels are low, contributing to the sensation of fatigue.

Tonus

The state of partial contraction or tension of muscles at rest, maintaining posture and readiness for action.