Year Free Cash Flow 1 20,000,000 2 15,000,000 Let's say there is a company that expects the above cash flow.The company

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answerhappygod
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Year Free Cash Flow 1 20,000,000 2 15,000,000 Let's say there is a company that expects the above cash flow.The company

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Year
Free Cash Flow
1
20,000,000
2
15,000,000
Let's say there is a company that expects the above cash
flow.The company is expected to have no cash flow from year 3.It is
said that the cost of capital for stocks is 0.10, and the cost of
capital for bonds is 0.05.It has issued 10,000,000 one-year
liabilities.
1)Calculate the value of borrowed capital at zero point in this
company.
(Please indicate the natural number unit.))
2)In the above question, calculate the return on
shareholders.
(The root formula of the quadratic equation may be required.)
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