You have been tasked with using the FCF model to value Julies Jewelry Co. After your initial review, you find that Julies has a reported equity beta of 1.7, a debt-to-equity ratio of .5, and a tax rate of 21 percent. In addition, market conditions suggest a risk-free rate of 6 percent and a market risk premium of 12 percent. If Julies had FCF last year of $50.5 million and has current debt outstanding of $126 million, find the value of Julies equity assuming a 5.0 percent growth rate in FCF

Value of the equity: