a.You have been tasked with using the FCF model to value Julies Jewelry Co. After your initial review, you find that Julies has a reported equity beta of 1.5, a debt-to-equity ratio of .5, and a tax rate of 21 percent. In addition, market conditions suggest a risk-free rate of 4 percent and a market risk premium of 8 percent. If Julies had FCF last year of $45.5 million and has current debt outstanding of $116 million, find the value of Julies equity assuming a 2.9 percent growth rate in FCF

b.Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2019. Also assume that the firms equity beta is 1.60, the risk-free rate is 2.50 percent, and the market risk premium is 9.0 percent.

Dividends per share	$	2.20
Return on equity		11.50	%
Book value per share	$	18.25

	Earnings			Cash Flow			Sales
2019 value per share	$	5.00		$	6.50		$	25.65
Average price multiple		13.10			9.50			2.44
Forecasted growth rate		13.56	%		11.33	%		7.36	%

Using the PE, P/CF, and P/S ratios, estimate the 2020 share price for Beagle Beauties. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c.Lauryns Doll Co. had EBIT last year of $46 million, which is net of a depreciation expense of $4.6 million. In addition, Lauryns made $6.25 million in capital expenditures and increased net working capital by $3.6 million. Assume that Lauryns has a reported equity beta of 1.5, a debt-to-equity ratio of .4, and a tax rate of 21 percent. What is Lauryns FCF for the year?

d.You are going to value Lauryns Doll Co. using the FCF model. After consulting various sources, you find that Lauryn's has a reported equity beta of 1.4, a debt-to-equity ratio of .5, and a tax rate of 21 percent. Based on this information, what is the asset beta for Lauryns?