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Assume that today is December 31, 2021, and that the following information applies to Abner Airlines: - After-tax operating income [EBIT(1 - T)] for 2022

image text in transcribed Assume that today is December 31, 2021, and that the following information applies to Abner Airlines: - After-tax operating income [EBIT(1 - T)] for 2022 is expected to be $400 million. - The depreciation expense for 2022 is expected to be $180 million. - The capital expenditures for 2022 are expected to be $350 million. - No change is expected in net operating working capital. - The free cash flow is expected to grow at a constant rate of 7% per year. - The required return on equity is 14%. - The WACC is 9%. - The firm has $194 million of nonoperating assets. - The market value of the company's debt is $4.360 billion. - 300 million shares of stock are outstanding. $

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