Question: . Lecque is evaluating Suns by using the FCFF valuation approach. Lecque has collected the following information (currency in dollars): Suns has a net income

 . Lecque is evaluating Suns by using the FCFF valuation approach.

. Lecque is evaluating Suns by using the FCFF valuation approach. Lecque has collected the following information (currency in dollars): Suns has a net income of $257 million, depreciation of $95 million, capital expenditures of $166 million, and an increase in working capital of $41 million. . Suns will finance 40 percent of the increase in net fixed assets (capital expenditures less depreciation) and 40 percent of the increase in working capital with debt financing. Interest expenses are $147 million. The current market value of Pharmet's outstanding debt is $1,521 million FCFF is expected to grow at 5 percent indefinitely The tax rate is 27 percent Suns is financed with 56 percent debt and the rest for equity. The before-tax cost of debt is 8 percent, and the before-tax cost of equity is 14 percent. Suns bas 10 million outstanding shares. Your task is to estimate the total value of the firm

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