Consider company with revenues of 20 million this year The company is projected to grow its revenue 10 over the next year What is its projected free cash flow next year if it is forecasted to have the following characteristics Operating margin 60 Tax rate 15 Reinvestment rate 45 Assume that the company has no non operating income so that EBIT Operating income Answer in millions showing one decimal place e g 45 318 910 45 3 Hint Step 1 Calculate next year s revenue projecting by applying the projected growth rate to this year s revenues Step 2 Calculate next year s operating income using next year s revenues and operating margin Step 3 Take the operating income as the company s EBIT and plug that in the FCFF formula