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1 0 . You ve completed calculating a target company s unlevered FCF which you estimate to be $ 2 0 0 million for the

10. Youve completed calculating a target companys unlevered FCF which you estimate to be $200 million for the current year. Properly reflected in that is $15 million of depreciation, $12 million of capex and a net investment in NWC of $5 million. The companys tax rate is 20%. In order to calculate the levered FCF, you will assume $500 million of debt at an interest rate of 6% per year. What will the levered FCF be using this debt and the same tax rate?
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a. $215 million
b. $178 million
c. $126 million
d. $176 million

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