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Assume today is december 3 1 , 2 0 1 6 . Barrington industries expects that its 2 0 1 7 after tax operating income

Assume today is december 31,2016. Barrington industries expects that its 2017 after tax operating income [EBIT(1-T)] will be $440 million and its 2017 depreciation expense will be $70 million. Barringtons 2017 gross capital expensitures are expected to be $100million and the change in its net operating working capital for 2017 will be $30 million. The firms free cash flow is expected to grow at constant rate if 5.5% annually. Assume that its free cash flow occurs at the end of each year. The firms weighted average cost of capital is 8.8%; the market value of the company's debt is $2.8 Billion; and the company has 190 million shares of common stock outstanding. The firm has no preferred stock on its balance sheet and has no plans to use it in the future

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