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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
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 a debttoequity ratio of and a tax rate of percent. Assume a riskfree rate of percent and a market risk premium of percent. Lauryn's Doll Co 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? Do not round intermediate calculations. Enter your answer in millions rounded to decimal places.
Answer is complete but not entirely correct.
Firm value
$
million Was incorrect
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