Jean Jacque is evaluating Pharmet by using the FCFF valuation approach Jean has collected the following information (currency in dollars) Pharmet has a net income of $268 million, depreciation of $94 million, capital expenditures of $160 million, and an increase in working capital of $49 million Pharmet will finance 40 percent of the increase in net fixed assets (capital expenditures less depreciation) and 40 percent of the increase in working capital with debt financing Interest expenses are $146 million The current market value of Pharmets outstanding debt is $1,637 million FCFF is expected to grow at 4 percent indefinitely The tax rate is 29 percent Pharmet is financed with 52 percent debt and the rest for equity The before tax cost of debt is 9 percent, and the before tax cost of equity is 14 percent Phaneuf has 10 million outstanding shares Your task is to estimate the total value of the equity Write your answer in decimal form and round it to two decimal places Your answer will be in millions, for example if you get 234 24, you can write 234 24 but in fact, it is 234 24 millions

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Jean Jacque is evaluating Pharmet by using the FCFF valuation approach. Jean has collected the following information (currency in dollars): Pharmet has a net income

Jean Jacque is evaluating Pharmet by using the FCFF valuation approach. Jean has collected the following information (currency in dollars):

Pharmet has a net income of $268 million, depreciation of $94 million, capital expenditures of $160 million, and an increase in working capital of $49 million.

Pharmet will finance 40 percent of the increase in net fixed assets (capital expenditures less depreciation) and 40 percent of the increase in working capital with debt financing.

Interest expenses are $146 million. The current market value of Pharmets outstanding debt is $1,637 million.

FCFF is expected to grow at 4 percent indefinitely.

The tax rate is 29 percent.
Pharmet is financed with 52 percent debt and the rest for equity. The before-tax cost of debt is 9 percent, and the before-tax cost of equity is 14 percent.

Phaneuf has 10 million outstanding shares.

Your task is to estimate the total value of the equity.

Write your answer in decimal form and round it to two decimal places. Your answer will be in millions, for example - if you get 234.24, you can write 234.24 - but in fact, it is 234.24 "millions".