A company has net cash provided by operating activities of $180,000, capital expenditures of $50,000, debt repayments of $20,000, and new debt issued of $10,000. Calculate the free cash flow to equity (FCFE). Discuss the significance of FCFE in equity valuation and financial analysis. Analyze how FCFE provides insights into the company’s ability to generate cash flows available for dividends and stock buybacks. Consider the implications of a high or low FCFE for the company’s financial flexibility and shareholder returns. Discuss the strategic importance of managing FCFE, including optimizing operating cash flows, managing capital expenditures, and balancing debt financing. Explain how FCFE can be used in discounted cash flow (DCF) valuation models to estimate the intrinsic value of a company’s equity. Discuss the limitations of FCFE and how it can be complemented with other cash flow metrics.