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Eugene Shoes has an asset beta of 1.5 and is all equity. The company consists of two divisions: shoes and athletics apparel. The company has

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Eugene Shoes has an asset beta of 1.5 and is all equity. The company consists of two divisions: shoes and athletics apparel. The company has $75M of free cash flow today, and projected to generate cash flows of S60M each year starting next year, in perpetuity, that grow by 1 percent per year. Assume a risk free rate of 3.0 percent and a market risk premium of 6.0 percent. What is the maximum you would be willing to pay to acquire Eugene Shoes? 620.45M 575M O 475.45M

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