 लिववेट येदवेस्मन्स को एवलवेट करने के लिए एक आर मैठर जो हम अस्तमाल गटे हैं आप आप प्लोड़़ को एक्वूटी विछ तो एभरीवेट येट एक यावटी एक यावटी एक अपती येट एप्रोज कंडर you need to have the cash flows from the project to the equity holders of the levered firm levered का मतल बोता है कि आप लोन लेरे and it will be discounted at the cost of equity capital and then you can find out the value of flows to equity to gather there are three steps that are involved to follow this approach the first thing is you need to calculate the levered cash flow secondly, you calculate your discount rate for levered equity and then you do the analysis of net present value now levered cash flow is the cash flow of the project after cash costs, cash paid on interest and cash paid in taxes so to see this, if we look at this formula the first thing is as I told you that this is a three step process in which you can find out the value so first of all you calculate the levered cash flow for levered cash flow we have this formula which is equal to UCF UCF is a levered cash flow and in this you have subtracted 1-TC where TC is the tax rate this small rb is written this is the interest rate which you have to pay then capital B is the amount of the project financed by debt so you have taken the amount of debt you have multiplied the interest with that amount then you will have to multiply this by 1-TC where TC is the tax rate and you have to subtract the entire value by calculating this value so you will have levered cash flow after calculating the levered cash flow you will have to calculate the discount rate for levered equity and for that what we do is the discount rate for levered equity is simply the rate of expected return that can be observed by the stocks price in the market so the stock price available in the market if you take that information that will give you a major discount rate of levered equity now you have got the two values third discount rate of levered equity to calculate the discount rate we can look at this particular formula in this you need unlevered rate of return you have borrowed the amount debt financing is capital B capital S that is equity so B over S is debt to equity ratio you have to multiply this 1-TC TC is the tax rate r0 is the unlevered rate of return rb is the rate of return you are giving on the the amount of debt financing that you are giving so in this formula you will plug all the given values so you will be able to find out the discount rate for levered equity or the levered rate of return once you have got these two numbers after that you do NPV analysis which is the net present value analysis net present value analysis what we do we calculate the present values and what we will do for that present value of the cash flows to equity we will remove simply we have to discount the levered cash flows by the expected rate of the levered equity which you have removed and then in order to find the net value to remove the net present value we will subtract the present value of the initial cash outflows so we have the net present value that you have the value with the help of that you will be able to find out how much you have to leverage your total investments overall your capital structure the debt financing how much you have to do so this is the second way FTE method that helps us in analyzing or evaluating the levered investments