Wat is the firms market value of equity in millions of


The following information is available for the Firm:

Net Income is $1,000,000

Outstanding Shares of Common Stock is 500,000 shares

Dividends Paid is $250,000

The Risk Free Rate is 2%

Return on Equity is 20%

The Firms Beta is 1.5

The Return on the Market is 12%

The market value of the Firm’s equity at the beginning of the year is $7.5 Million

What is the firms Market Value of Equity (in Millions of $ rounding to 1 decimal)?

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