### Calculating Firm Value Enterprise Valuations

APV Valuation Assumptions Unlevered cost of equity: 12% Borrowing Rate: 8% Tax Rate: 30% Current Debt Outstanding: $200.00 Years 1 2 3 4 & Beyond Firm Free Cash Flows $100.00 $120.00 $180.00 $200.00 Interest-bearing Debt 200.00 150.00 100.00 50.00 Interest Expense 16.00 12.00 8.00 4.00 Interest tax savings 4.80 3