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You are going to value Lauryn s Doll Company using the FCF model. After consulting various sources, you find that Lauryn's has a reported equity
You are going to value Lauryns Doll Company using the FCF model. After consulting various sources, you find that Lauryn's has a reported equity beta of a debttoequity ratio of and a tax rate of percent. Assume a riskfree rate of percent and a market risk premium of percent. Lauryns Doll Company had EBIT last year of $ million, which is net of a depreciation expense of $ million. In addition, Lauryn's made $ million in capital expenditures and increased net working capital by $ million. Assume the FCF is expected to grow at a rate of percent into perpetuity. What is the value of the firm?
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