Question: debt = 8 0 million preferred share = 2 0 million equity = 1 0 0 million Before tax cost of debt = 8 %

debt =80 million
preferred share =20 million
equity =100 million
Before tax cost of debt =8%
Cost of preferred stock =10%
Cost of equity =15%
Corporate tax rate =30%
Total sale =500 million
Net operating profit after tax =70 million
Depreciation =10 million
Capital expenditure =15 million
Change in net working capital =5 million
Net income =50 million
What if free cash flow to firm(FCFF)=?
1.60
2.40
3.55
4.45

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