Polar Inc. generated $30 million in net income on revenues of $120 million during the course of the most recent year. You expect revenuesto grow 10% a year next year and marginsto stay stable. The firm'snon-cash current assetsare $42 million and its current liabilities are $30 million,and non-cash working capitalas a percent of revenuesis expected to remain unchanged next year. 

If the net cap ex is expectedto be $10 millionnext year, what is your estimate of the FCFE for the next year?

Answer rating: 100% (QA)

To calculate the Free Cash Flow to Equity FCFE we need to determine the change in noncash working ca... View the full answer