Question: 13. A recent annual income statement selected items are listed below: Assume that during the year, the company spent $180 on new capital equipment and

13. A recent annual income statement selected items are listed below: Assume that during the year, the company spent $180 on new capital equipment and increased current assets net of non-interestbearing current liabilities by $120. The company's free cash flow is: a. $425 b. $500 c. $700 d. $725 14. A private company has $3 million in earnings on $20 million in sales and has 1 million shares outstanding. Two rival public firms have the following information: The estimated price of this private company's stock based on P/E is: $33.43.$36.00$39.00

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