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Cremona is a manufacturer of cellos. It earned an after-tax return on capital of 10 percent last year and expects to maintain this next year.
Cremona is a manufacturer of cellos. It earned an after-tax return on capital of 10 percent last year and expects to maintain this next year. If the current year's after-tax operating income is $100 million and the firm reinvests 60 percent of this income back, estimate the FCFF next year.
a $100 million
b $42.4 million
c $49.2 million d $54.3 million
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