Question: You have been tasked with using the FCF model to value Julie's Jewelry Co. After your initial review. you find that Julie's has a reported

You have been tasked with using the FCF model to value Julie's Jewelry Co. After your initial review. you find that Julie's has a reported equity beta of 17 a debt-to-equity ratio of 5, and a tax rate of 21 percent. In addition, market conditions suggest a risk-free rate of 6 percent and a market risk premium of 12 percent. If Julie's had FCF last year of $50.5 million and has current debt outstanding of $126 million, find the value of Julie's equity assuming a 5.0 percent growth rate in FCF (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. Value of the equity $ 213.00

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