A company reported an EBIT of $$40$ million for the last financial year. For the same financial year, the company reported the following: capital expenditure of $$15$ million; depreciation of $$10$ million; and change in working capital of $$3$ million. The company's dividend payout ratio is $40\%$ and the return on assets $($ROA$)$ is $8\%.$ The current value of debt of this company is $$75$ million and its weighted average cost of capital $($WACC$)$ is $12\mathrm{.}52\%.$ The corporate tax rate is $40\%.$

Calculate the value of equity of this company.

Question $16$Answer

a$.$

$$218\mathrm{.}35$ million.

b$.$

$$214\mathrm{.}53$ million.

c$.$

$$142\mathrm{.}20$ million.

d$.$

$$122\mathrm{.}56$ million

e$.$

$$120\mathrm{.}12$ million