An analyst following Barlow Energy has compiled the following information in preparation for additional analysis she has to include in a report she has been asked to produce (data in $1million)

Calculate the current FCFF and show work.

Calcualte the current FCFE and show work.

Security Type Market Value Before-Tax Cost (Return) Bonds $600 7.5% Common Stock $700 14.0% Total $1,500 Net income $125 Investment in working capital $30 Investment in fixed capital $100 New debt borrowing $100 Debt repayment $60 Depreciation $50 Tax rate 40% Long-term growth rate of FCFE 4% Interest payment $45