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Janesen Incorporated wants to estimate its pro-forma Free Cash Flow in year 2 associated with a new product launch. They have the following information (all

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Janesen Incorporated wants to estimate its pro-forma Free Cash Flow in year 2 associated with a new product launch. They have the following information (all information relates to year 2): Estimated Earnings Before Interest and Tax are $20,000. Janesen's tax rate is 25%, and depreciation is $5,000. The estimated investment in operating capital is $7,000. What is Janesen's Free Cash Flow? $13,000 O $15,000 $18,000 $27,000 There is 50% chance of a recession and an 50% chance of a fast growth environment next year. If BBB corp's stock is expected to decrease 20% in a recession, but increase 50% in a fast growth environment, what is the expected return on BBB corp's stock next year? 15% 0 20% 25% 30%

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