Question 13 5 pts Consider the free cash flow approach to stock valuation. Utica Manufacturing Company is expected to have before-tax cash flow from operations of $500,000 in the coming year. The firm's corporate tax rate is 30 percent. It is expected that $200,000 of operating cash flow will be invested in new fixed assets. Depreciation for the year will be $100,000. After the coming year, cash flows are expected to grow at 6 percent per year. The firm has no outstanding debt. The projected free cash flow of Utica Manufacturing Company for the coming year (to the nearest $) is $150,000 $300,000 $180,000 $380,000 O None of the listed choices correct Question 14 5 pts A company's net profit is $30,000. It is planning a capital investment of $10,000. The amount of depreciation charged during the year is $2,000. The additional working capital requirement is estimated as $3,000. The company has a target capital structure of 30 percent debt. The tax rate is 20 percent. The amount of interest paid is $1,000. Number of shares outstanding is 10,000. The FCFF is: $25,800 $25,200 $25,000 $26,000 None of the listed choices is correct. Question 15 5 pts Assume that company A's depreciation has increased by $100. Keeping all else equal, if the tax rate is 40 percent, FCFE and FCFF will remain unchanged. FCFE will increase by $40 and FCFF will increase by $60 FCFE will increase by $100 and FCFF will increase by $100 FCFE will increase by $60 and FCFF will increase by $60 FCFE will increase by $40 and FCFF will increase by $40