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13. The following information pertains to the Harrisburg Tire Company (HTC) in 2000. Earnings (net income) = $600M. Dividends = $120M. Interest expense $400M. Tax
13. The following information pertains to the Harrisburg Tire Company (HTC) in 2000. Earnings (net income) = $600M. Dividends = $120M. Interest expense $400M. Tax rate = 40% Depreciation = $500M. Capital spending = $800M. Total.assets = $10B (book value and market value). Debt = $4B (book value and market value). Equity = $6B (book value and market value). The firm's working capital needs are negligible, and they plan to continue to operate at their current capital structure. The free cash flow to the firm is: * (1 Point) $540M. $300M 5420M S560M none of the above
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