if u answer is 150 million, its incorrect answer

Example 5.12: A company had total revenues of $200 million, operating profit margin of 20%, and depreciation and amortization expense of $10 million over the trailing twelve months. The company currently has $300 million in total debt and $100 million in cash and cash equivalents. If the company's market capitalization (market value of its equity) is $1 billion, what is its EV/EBITDA ratio? Solution: EBITDA = EBIT + Depreciation & Amortization = Revenues x Operating profit margin + Depreciation & Amortization = $200 million x 0.2 + $10 million = $50 million EV = Equity + Debt-Cash = $1 billion + $300 million - $100 million = $1.2 billion EV / EBITDA = $1.2 billion/$50 million = 24.0 Reading assessment 5.12 Homework. Unanswered You are in the middle of valuing a stock using the DCF method. According to your projections, the company is expected to generate free cash flows of $40 million in 4 years, after which FCFF is expected to grow at a stable rate in perpetuity. Instead of using the perpetuity growth method, you decide to estimate the company's terminal value using the exit multiple approach. Your analysis of comparable companies reveal an average EV/FCFF ratio of 15.0. What is your estimate of the company's Terminal Value? Answer in millions, rounded to one decimal place. Numeric