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Lansing Corporation reported net income of $65 million for last year. Depreciation expense totaled $15 million and capital expenditures came to $6 million. Free cash

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Lansing Corporation reported net income of $65 million for last year. Depreciation expense totaled $15 million and capital expenditures came to $6 million. Free cash flow is expected to grow at a rate of 4.5% for the foreseeable future. Lansing faces a 40% tax rate and has a 0.35 debt to equity ratio with $260 million (market value) in debt outstanding. Lansing's equity beta is 1.35, the risk-free rate is currently 5% and the market risk premium is estimated to be 6.5%. What is the current total value of Lansing's equity (in millions)? A) $1,025.95 B) $655.90 C) $951.26 D) $737.54 E) $840.61

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