You have been tasked with usin

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 9 percent. If Julie’s had FCF last year of $43.0 million and has current debt outstanding of $111 million, find the value of Julie’s equity assuming a 4.0 percent growth rate in FCF. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)


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