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

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Definitions:

Logistics

The coordination and management of moving goods and services from one location to another, including transportation, inventory, warehousing, and delivery.

RFP

Request For Proposal, a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset.

RFQ

Acronym for Request for Quotation, a document sent to suppliers to invite them to submit a bid for the supply of specific products or services.

Contractor Performance

Evaluation of a contractor's ability to provide services or deliver goods in accordance with agreed terms and conditions.