6.4

Problem 6-5 Free Cash Flow Model (LO3, CFA2) Lauryn's Doll Co. had EBIT last year of $50 million, which is net of a depreciation expense of $5.0 million. In addition, Lauryn's made $6.5 million in capital expenditures and increased net working capital by $3.4 million. Assume that Lauryn's has a reported equity beta of 1.6, a debt-to-equity ratio of 0.3, and a tax rate of 30 percent. What is Lauryn's FCF for the year? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) FCF million