Lantern Corporation reported EBIT of $75 million for last year. Depreciation expense totaled $22 million, capital expenditures came to $6 million, and net working capital increased by $3 million. Free cash flow is expected to grow at a rate of 5% for the foreseeable future. Lantern faces a 40% tax rate and has a 0.45 debt to equity ratio with $190 million (market value) in debt outstanding. Lantern's equity beta is 1.3, the risk-free rate is currently 5% and the market risk premium is estimated to be 6.5%.

Based on the information, what is Lantern's asset beta?

Using your answer to the previous question a), calculate the appropriate discount rate.

What is Lantern's FCF for the year?

What is the current total value of Lantern's equity (in millions)? (5 points)

What is the fair value of Lantern's per share if it has 100 million shares of outstanding?