MGS Corporation is expected to generate cash flows $10.9 million per year.MGS Corporation has a personal debt of $40 million at 5% cost,a tax rate of 26% and an unlevered cost of capital of 10%.
(a) Calculate the value of MGS Corporation's equity using the Adjusted Present Value (APV) approach.
(b) Calculate the Weighted Average Cost of Capital (WACC) for the MGS Corporation
(c) Caluculate the value of MGS Corporation's equity using the WACC approach.
(d) Calculate the value of MGS Corporation's equity using the Flow to Equity (FTE) approach.