Sprint Inc. expects the following:
UCFBT=$ 10 million in perpetuity from the end of year 1.
Debt= $ 20 million. Rb =5% Tax rate is 50% R0 =10%
Debt is fully amortized over 3 years in three equal payments.
Find the value of Sprints’ equity today.
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Part 1
Sprints Equity today is $ ____ enter your response here million. (Round to two decimals)
Use 99 if the answer is indeterminate