Problem:

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 1.5, a debt-to-equity ratio of 0.3, a tax rate of 40 percent, and net income last year of $35 million. Assume a risk-free rate of 4 percent and a market risk premium of 12 percent. Included in net income was a depreciation expense of $4.5 million. In addition, Lauryn paid out $4.25 million in capital expenditures. Assume the company's FCF is expected to grow at a rate of 4 percent into perpetuity.

Question: What is the value of the firm? Please provide all computation and formulas.