QUESTION $13$

MED Equip Inc. reported EBITDA of $150$ million in the most recent financial year and paid $40\%$ of its income as taxes.

The firm also had capital expenditures of $$75$ million, depreciation of $$25$ million and no additional working capital needs during the year. The firm has a growth rate of $4\%.$ The WACC for this firm is $9\%.$

Please calculate the Free cash Flow to Fir$$n $.($ First calculate EBIT$=$ EBITDA$-$DA$)$

$$525$ Million

$$500$ Million

$$520$ Million

$$25$ Million