The MoMi Corporation's cash flow from operations before interest and taxes was $2 million in the year just ended, and it expects that

this will grow by 5% per year forever. To make this happen, the firm will have 1 invest an amount equal to 20% of pretax cash flov

each year. The tax rate iS 35%. Depreciation was $200,000 in the year just ended and is expected to grow at the same rate as the

operating cash flow. The appropriate market capitalization rate for the unleveraged cash flow is 12% per year, and the firm currently

has debt of $4 million outstanding. Use the free cash flow approach to value the firm's equity. (Enter your answers in dollars, not in

millions. Omit the "$" sign in your response.)

Value of the equity