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Consider the free cash flow approach to stock valuation. F&G Manufacturing Company is expected to have before - tax earnings from operations of $ 7

Consider the free cash flow approach to stock valuation. F&G Manufacturing Company is expected to have before-tax earnings from operations of $750,000 in the coming year. The firm's corporate tax rate is 40%. It is expected that $250,000 of operating cash flow will be invested in new fixed assets. Depreciation for the year will be $125,000. After the coming year, cash flows are expected to grow at 7% per year. The appropriate market capitalization rate for unleveraged cash flow is 13% per year. The firm has no outstanding debt. The projected operating cash flow of F&G Manufacturing Company for the coming year is ______.
Group of answer choices
A. $250,000
B. $180,000
C. $300,000
D. $380,000
E. None of these is correct

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