You are going to value Lauryn's Doll Co, using the FCF model. After consulting various...
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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 beta of 1.6, a debt-to-equity ratio of 5, and a tax rate of 21 percent. Assume a risk-free rate of 6 percent and a market risk premium of 7 percent Lauryn's Doll Co, had EBIT last year of $52 milion, which is net of a depreciation expense of $5.2 million. In addition, Lauryn's made $5.75 million in capital expenditures and increased networking capital by $3.2 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.) Firm value million co
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