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need both answers Lambert Corporation reported net income of $60 million for last year. Depreciation expense totaled $20 million and capital expenditures came to $5
need both answers
Lambert Corporation reported net income of $60 million for last year. Depreciation expense totaled $20 million and capital expenditures came to $5 milion. Free cash flow is expected to grow at a rate of 4.5% for the foreseeable future. Lambert faces a 40% tax rate and has a 0.45 debt to equity ratio with $255 million (market value) in debt outstanding. Lambert's equity beta is 1.30, 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 Lambert's equity (in millions)? What is the WACC? 1021%5.95%7.62%9.90%5.12% In the previous question, assume that the WACC is 12%. What is the current total value of Lambert's equity (in millions)? $790.00$1.095.61$1,373.34$840.61$951.26 Step by Step Solution
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