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

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 1.4, a debt-to-equity ratio of 5, and a tax rate of 21 percent. In addition, market conditions suggest a risk-free rate of 2 percent and a market risk premium of 8 percent. If Julie's had FCF last year of $42.5 million and has current debt outstanding of $110 million, find the value of Julie's equity assuming a 2.5 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 $ 210.15

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