A firm's cash flow from operations is $31 million, depreciation is $3 million, its investments in fixed capital totals $12 million, its after-tax interest totals $4 million and its investment in working capital totals $5 million. During the year the firm borrowed $6 million. The tax rate is 40%. What is its Free Cash Flow to Equity?

Question 5Answer

a.$33.00 million

b.$23.00 million

c.$25.00 million

d.$34.60 million