Stuart,Inc.reported net income of $20 million for last year.Depreciation expense totaled $15 million and capital expenditures came to $5 million.Free cash flow is expected to grow at a rate of 6% for the foreseeable future.Stuart faces a 40% tax rate and has a 0.30 debt to equity ratio with $75 million (market value)in debt outstanding.Stuart's equity beta is 1.1,the risk-free rate is currently 6% and the market risk premium is estimated to be 8.0%.What is the current value (in millions)of Stuart's equity?
A)$237.34
B)$352.42
C)$427.42
D)$556.79
E)$689.10

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The Answer of Stuart,Inc.reported net income of $20 million for last year.Depreciation expense totaled $15 million and capital expenditures came to $5 million.Free cash flow is expected to grow at a rate of 6% for the foreseeable future.Stuart faces a 40% tax rate and has a 0.30 debt to equity ratio with $75 million (market value)in debt outstanding.Stuart's equity beta is 1.1,the risk-free rate is currently 6% and the market risk premium is estimated to be 8.0%.What is the current value (in millions)of Stuart's equity?
A)$237.34
B)$352.42
C)$427.42
D)$556.79
E)$689.10