Consider the data below for ABC Co. and do the following:

1. Calculate FCF and FCFE using the EBIT method.
2. Calculate FCF and FCFE using the CFO method.

The FCFs and FCFEs from two methods should be the same.

Table 2.2. Data for ABC Co.

Amount	Description
$400	EBIT
$100	Interest paid
$120	Income tax [40% of (400 - 100)]
$180	Net income
$200	Depreciation
$300	Capital expenditure
$8	Increase in required noncash working capital
$2	Increase in required cash
$150	Increase in debt financing
40%	Marginal and average tax rate