Use the below information to value a levered company with constant annual perpetual cash flows from assets. The next cash flow will be generated in one year from now, so a perpetuity can be used to value this firm. Both the cash flow from assets including and excluding interest tax shields are constant (but not equal to each other).

Data on a Levered Firm with Perpetual Cash Flows | ||

Item abbreviation | Value | Item full name |

##\text{CFFA}_\text{U}## | $48.5m | Cash flow from assets excluding interest tax shields (unlevered) |

##\text{CFFA}_\text{L}## | $50m | Cash flow from assets including interest tax shields (levered) |

##g## | 0% pa | Growth rate of cash flow from assets, levered and unlevered |

##\text{WACC}_\text{BeforeTax}## | 10% pa | Weighted average cost of capital before tax |

##\text{WACC}_\text{AfterTax}## | 9.7% pa | Weighted average cost of capital after tax |

##r_\text{D}## | 5% pa | Cost of debt |

##r_\text{EL}## | 11.25% pa | Cost of levered equity |

##D/V_L## | 20% pa | Debt to assets ratio, where the asset value includes tax shields |

##t_c## | 30% | Corporate tax rate |

What is the value of the levered firm including interest tax shields?