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FLIPCOs free cash flow from assets (to the firm) is reported to be $205 million. The firms interest expense is $22 million. Assume the tax

FLIPCOs free cash flow from assets (to the firm) is reported to be $205 million. The firms interest expense is $22 million. Assume the tax rate is 35% and the net debt of the firm increases by $3 million. What is the market value of equity if the free cash flow to equity is projected to grow at 3% indefinitely and the cost of equity is 12%?

A. $225 million

B. $2.217 billion

C. $193.7 million

D. $1.4 billion

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