Based on the below income statement and balance sheet; compute the expected free cash flow to equity in 2009. Income Statement

	2009 Forecast	2008 actual
Sales Cost of goods sold	760 410	650 320
Gross ProfitDepreciation	350 120	330 90
EBIT Interest expenses	230 50	240 70
Pre-tax earningsTaxes (30%)	180 54	170 51
Net Income	126	119

ABC Corp. Balance Sheet

	2009 Forecast	2008 actual		2009 Forecast	2008 actual
Cash Accounts ReceivablesInventoryCurrent assets	90 215650 955	110 190590 890	Accounts payablesShort-term debts Current liabilities	70 439 509	65 495 560
Fixed Assets Accu. Depreciation Total assets	1,300 (200) 2,055	1,180 (160) 1,910	Long-term debt Common stock Retained earnings Total liabilities and owners equity	320 900 326 2,055	250900 200 1,910

Question 17 options:

1)

$45

2)

$53

3)

$60

4)

$68