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Consider Khant Enterprises (KE) whose projected financial results for the next 4 years are summarized...

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Finance

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Consider Khant Enterprises (KE) whose projected financial results for the next 4 years are summarized below. Beyond year 4,KE is expected to grow at a 2.0% annual rate in perpetuity. KE currently has a $200 million term loan outstanding that will be paid off in equal monthly installments over the next 4 years. The term loan has a 7.00% interest rate. KE also has another $200 million in debt at a 6.0% interest rate that will be outstanding in perpetuity. KE has a 25.0% tax rate. KE has a 10.00% unlevered cost of equity, a 11.44% levered cost of equity and an 9.02% weighted average cost of capital. Based on the provided information, what is KE's implied total firm (enterprise) value? Hint, KE's capital structure will change going forward as the company pays down debt. Please be sure to show all work and mark your answer clearly in an uploaded excel file

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