NO CHATgpt please.

just show calculations$/$formula$,$ no written explanations.

You have been asked to review the valuation of a privately$-$owned family business for an all$-$equity funded transaction. The analyst who valued the business arrived at a value of $$200$ million, based upon a cost of equity of $18\%$ and an expected growth rate of $3\%$ a year forever. She has made two mistakes:

$$ The FCFF was computed without considering the salaries that would need to be paid to family members who work at the firm. You estimate that these salaries would amount to $$5$ million next year, after taxes.

$$ The potential buyer is a publicly traded company, whose investors are diversified. You believe that only $30\%$ of the risk in this company is market risk.

If the risk$-$free rate today is $3\%,$ the equity risk premium is $6\%,$ estimate the fair value for the firm in this transaction.

A$.$ $ $555\mathrm{.}55$ million

B$.$ $ $600$ million

C$.$ $ $622\mathrm{.}22$ million

D$.$ $ $684$ million