BUSAD $134-lnv.x$

Question $1-$ Chapter $06$ Proble

Chapter $06$ Problems $-$ Algorith $x$

Question $2-$ Chapter $05$ Probli $x$

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er $06$ Problems $-$ Static$*$

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You are going to value Lauryn's Doll Co$.$ using the FCF model. After consulting various sources, you find that Lauryn's has a reported equity beta of $1\mathrm{.}4,$ a debt$-$to$-$equity ratio of $\mathrm{.}3,$ and a tax rate of $21$ percent. Assume a risk$-$free rate of $4$ percent and a market risk premium of $7$ percent. Lauryn's Doll Co$.$ had EBIT last year of $$40$ million, which is net of a depreciation expense of $$4$ million. In addition, Lauryn's made $$5$ million in capital expenditures and increased net working capital by $$3$ million. Assume the FCF is expected to grow at a rate of $3$ percent into perpetuity. What is the value of the firm? $($Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places.$)$

Firm value I million

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