es Problem 6-6 Free Cash Flow Model (LO3, CFA9) You are going to value Lauryn's Doll Company 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 0.5, 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 Company had EBIT last year of $52 million, which is net of a depreciation expense of $5.2 million. In addition, Lauryn's made $5.75 million in capital expenditures and increased net working 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? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. Firm value million Check my w

You are going to value Lauryn's Doll Company 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 0.5 , 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 Company had EBIT last year of $52 million, which is net of a depreciation expense of $5.2 million. In addition, Lauryn's made $5.75 million in capital expenditures and increased net working 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? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. You are going to value Lauryn's Doll Company 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 0.5 , 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 Company had EBIT last year of $52 million, which is net of a depreciation expense of $5.2 million. In addition, Lauryn's made $5.75 million in capital expenditures and increased net working 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? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places