You are going to value lauryns doll co using the fcf model


You are going to value Lauryn's Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.7, a debt-to-equity ratio of .7, and a tax rate of 40 percent. Assume a risk-free rate of 3 percent and a market risk premium of 8 percent. Lauryn's Doll Co. had EBIT last year of $59 million, which is net of a depreciation expense of $5.9 million. In addition, Lauryn made $7.3 million in capital expenditures and increased net working capital by $2.4 million. Assume her FCF is expected to grow at a rate of 4 percent into perpetuity. What is the value of the firm? 

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Financial Management: You are going to value lauryns doll co using the fcf model
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