You are going to value Warm Water Corporation using the FCF model. After consulting various sources, you find that Warm Water has a reported equity beta of 1.4, a debt-to-equity ratio of .4, and a tax rate of 21 percent. Assume a risk-free rate of 5 percent and a market risk premium of 8 percent. Warm Water Corporation had EBIT last year of $46 million, which is net of a depreciation expense of $4.6 million. In addition, Warm Water made $6.25 million in capital expenditures and increased net working capital by $3.6 million. Assume the FCF is expected to grow at a rate of 3 percent into perpetuity. What is the value of the firm? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Group of answer choices

$338.98

$305.65

$302.22

$304.67

$320.91