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  3. purple (purp) expects free cash flow of $18 millio

Purple (PURP) expects free cash flow of $18 million each year. Its corporate tax rate...

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Purple (PURP) expects free cash flow of $18 million each year. Its corporate tax rate is 21%, and its unlevered cost of capital is 12%. It also has outstanding debt of $79.43 million, and it expects to maintain this level of debt permanently. The only friction is Corporate Taxes. a. What is the value of PURP without leverage? b. What is the value of PURP with leverage? a. The value of PURP without leverage is $ million. (Round to two decimal places.) b. The value of PURP with leverage is $ million. (Round to two decimal places.)

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