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HELP! You are now trying to assess the free cash flow to the firm for Echotech Systems in the most recent year. The income statement

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You are now trying to assess the free cash flow to the firm for Echotech Systems in the most recent year. The income statement is reported below: 2. Revenues - Cost of goods sold - Depreciation Operating Profit (EBIT) - Interest expenses Taxable Income Taxes Net Income $1,000 $ 550 $ 150 $ 300 $ 100 $ 200 $ 50 $ 150 You are also provided with the following information: - The firm reported capital expenditures of $ 50 million in the most recent year and also made two acquisitions one for $120 million (using cash) and one for $75 million (using stock). - The working capital increased from $ 80 million at the beginning of the year to $112 million at the end of the year. a. Estimate the free cash flow to the firm for the most recent year. b. The book value of equity was $ 1100 million at the beginning of the year and the book value of debt was $1000 million. Assuming that the firm maintains its return on capital and reinvestment rate from the most recent year for the next 5 years, estimate the expected growth rate. c. If your reinvestment rate remains unchanged, what can you do to increase the expected growth rate next year? Can you give an example?

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