Lauryn’s Doll Co. had EBIT last year of $52 million, which is net of a depreciation expense of $5.2 million. In addition, Lauryn’s made $5.75 million in capital expenditures and increased net working capital by $3.2 million. Assume that Lauryn’s has a reported equity beta of 1.7, a debt-to-equity ratio of .7, and a tax rate of 21 percent. What is Lauryn’s FCF for the year

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Lauryn’s Doll Co. had EBIT last year of $52 million, which is net of a depreciation expense of $5.2 million. In addition, Lauryn’s made $5.75 million in capital expenditures and increased net working capital by $3.2 million. Assume that Lauryn’s has a reported equity beta of 1.7, a debt-to-equity ratio of .7, and a tax rate of 21 percent. What is Lauryn’s FCF for the year?(Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

 

 
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Step 1

Given,

EBIT is $52 million

Depreciation expense $5.2 million

Capital expenditures is $5.75 million

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