Lambert Corporation Reported Net Income of $60 Million for Last

question 48

Multiple Choice

Lambert Corporation reported net income of $60 million for last year.Depreciation expense totaled $20 million and capital expenditures came to $5 million.Free cash flow is expected to grow at a rate of 4.5% for the foreseeable future.Lambert faces a 40% tax rate and has a 0.45 debt to equity ratio with $185 million (market value) in debt outstanding.Lambert's equity beta is 1.25,the risk-free rate is currently 5% and the market risk premium is estimated to be 6.5%.What is the current total value of Lambert's equity (in millions) ?

• A)$655.90
• B)$731.20
• C)$840.95
• D)$951.26
• E)$1,025.95

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Definitions:

Physical Proximity

Physical proximity refers to the physical distance or closeness between people or objects in a given space.

Similarity in Age

Refers to the condition or fact of being close or identical in age, often used in the context of social and developmental studies.

Mode

The most frequently occurring score(s) in a distribution.

Distribution of Annual Incomes

The spread of yearly earnings among different groups or individuals in a population.