1. Imagine that we are provided the following information for a firm:

• Net income = $50.
• Working capital investment = $4.
• Beginning gross fixed assets = $90;
• ending gross fixed assets = $136.
• Beginning accumulated depreciation = $30;
• ending accumulated depreciation = $40. Depreciation expense = $27.
• Net borrowing = $0.

In addition, a piece of equipment with an original book value of $19 was sold for $10. The equipment had a book value at the time of the sale of $2. The gain was classified as unusual.

Free cash flow to equity is closest to:

Select one:

a. $6

b. $18

c. $10