You are going to value Lauryn$$s Doll Co$.$ using the FCF model. After consulting various sources, you find that Lauryn$$s has a reported equity beta of $1\mathrm{.}4,$ a debt$-$to$-$equity ratio of $\mathrm{.}3,$ and a tax rate of $25$ percent. Assume a risk$-$free rate of $3\mathrm{.}5$ percent and a market rate of return of $7$ percent. Lauryn$$s Doll Co$.$ had EBIT last year of $$40$ million, which is net of a depreciation expense of $$4$ million. In addition, Lauryn$$s made $$5$ million in capital expenditures and increased net working capital by $$5$ million.

a$.$ Value Lauryn$$s Doll Co$.$ assuming the company$$s FCF is expected to grow at a rate of $4$ percent into perpetuity. $($Hint: First, calculate the firm's asset beta and the required rate of return using CAPM$)$

b$.$ What is the value of the equity if the firm has $$100$ million in debt outstanding?