Question: please hand write the solution please. 2. Lemmon has EAT, depreciation expense, capital expenses and debt principal payments of S4m, $.2m, $ 3m, and S.

please hand write the solution please.

2. Lemmon has EAT, depreciation expense, capital expenses and debt principal payments of S4m, $.2m, $ 3m, and S. 5m respectively Between the first and the second years, it has current assets of Silm and $11.4m and current debts of SSm and $5.Im respectively. Its unlevered bheta, D/E and t are 2, 60/40 and 25 respectively. Lemmon's ROE is 20%, and it plows about 30% of its profits back into its business. Derive the value of Lemmon by using the free cash flow to equity definition

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