22. Assume you are conducting a discounted cash flow valuation of Family Health Associates. You have assembled the following financial information (all numbers are in millions). The after tax-cost of debt is 7 percent, the cost of equity is 19 percent, and the weighted average cost of capital is 14.2 percent.

	Year 1	Year 2	Year 3	Year 4
Net profit	$3.0	$3.2	$4.0	$5.2
Depreciation	6.0	6.0	7.0	7.0
Equity retentions	3.0	4.0	5.0	6.0
Terminal value				60.0

What is the estimated equity value of the company?

A) $45.3 million

B) $65.6 million

C) $67.9 million

D) $77.4 million

E) $52.2 million