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You have been tasked with using the FCF model to value Julie's Jewelry Co. After your initial review, you find that Juli
Posted: Sat Feb 26, 2022 9:11 am
by answerhappygod
- You Have Been Tasked With Using The Fcf Model To Value Julie S Jewelry Co After Your Initial Review You Find That Juli 1 (21.23 KiB) Viewed 39 times
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 1.6, a debt-to-equity ratio of 5, and a tax rate of 21 percent. In addition, market conditions suggest a risk-free rate of 5 percent and a market risk premium of 7 percent. If Julie's had FCF last year of $48.0 million and has current debt outstanding of $121 million, find the value of Julie's equity assuming a 2.8 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 $ 309.77 X