Question
You are going to value Lauryns Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta
You are going to value Lauryns Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.6, a debt-to-equity ratio of .3, and a tax rate of 30 percent. Assume a risk-free rate of 5 percent and a market risk premium of 11 percent.Lauryns Doll Co. had EBIT last year of $50 million, which is net of a depreciation expense of $5 million. In addition, Lauryn made $6.5 million in capital expenditures and increased net working capital by $3.4 million. Assume her FCF is expected to grow at a rate of 3 percent into perpetuity. What is the value of the firm?
I have been using Excel to build my answers if possible provide excel spreadsheet |
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