NLT generates $13.2 million free cash flows every year forever. The company makes $4m interest payment to creditors every forever without repaying the principal of the debt (i.e. a permanent debt). The equity of NLT has a beta of 1.2 and the company is subject to 20% corporate tax rate. Assume the risk free interest rate is 3% and the market risk premium is 8%. The value of equity of NLT based flow to equity (FTE) approach is closest to:

Select one:

a.

$64.4m

b.

$79.4m

c.

$82.8m

d.

$100m

e.

$80m