Webster Industries is trying to project when it will be able to distribute cash to shareholders. This past year, the firm had net income of $70 million, capital expenditures of $100 million, and depreciation expense of $30 million. There was no change in the firm's $30 million in non-cash net working capital. Sales were $600 million. The company's finance department has made the following projections: Net Income will increase by 15% per year. Capital Expenditures will increase by 5% per year. Depreciation Expense will increase by 10% per year. Sales will increase by 5% per year. The non-cash net working capital to sales ratio will remain constant. Based upon these projections, when will Webster Industries be able to distribute cash to shareholders from its free cash flow to equity (FCFE)?

Select one:

A. The firm can distibute cash immediately from FCFE

B. The firm will have to wait until next year to distribute cash from FCFE

C. The firm is at least two years away from being able to distribute cash from FCFE

D. It does not appear that the firm will ever be in a position to distribute cash from FCFE