FinCorp's free cash flow to the firm is reported as $215 million. The firm's interest expense is

Question:

FinCorp's free cash flow to the firm is reported as $215 million. The firm's interest expense is $22 million. Assume the tax rate is 35% and the net debt of the firm increase by $5 million "What is the market value of equity if the FCFE is projected to grow at 5% indefinitely and the cost of equity is 8%?" Enter your answer in millions. Round your answer to 2 decimal places

Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the... Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...