Sally Rubber Co. has an expected net operating profit after taxes, EBIT(1 - T), of $300 million in the coming year. In addition, the firm is expected to have net capital expenditures of $45 million, and net operating working capital (NOWC) is expected to increase by $50 million. How much free cash flow (FCF) is Sally Rubber Co. expected to generate over the next year?

O $3,057 million

O $305 million

O $205 million

O $295 million

Sally Rubber Co.'s FCFs are expected to grow at a constant rate of 5.70% per year in the future. The market value of Sally Rubber Co.'s outstanding debt is $809 million, and its preferred stocks' value is $450 million. Sally Rubber Co. has 750 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 17.10%.

Term

Value (Millions)

Total firm value

Intrinsic value of common equity

Intrinsic value per share

Using the preceding information and the FF you calculated in the previous question, calculate the appropriate values in this table. Assume the firm

has no nonoperating assets.

Sally Rubber Co, has an expected net operating profit after taxes, EBrT(1-T), of $300 million in the coming year, In addition, the firm is expected to have net eapital expenditures of $45 million, and net operating working capital (NOWC) is expected to increase by $50 million, How much free cash flow (FCF) is Sally Rubber Co, expected to generate over the next year? 53,057 minion $305 millien 5205 miliion $295 milion Sally Rubber Co.'s FOFs are expected to grow at a constant rate of 5.70% per year in the future. The market value of Saily Rubber Co.'s outstanding debt is $809 million, and its preferred stocks' value is $450 milion. Sally Rubber Co. has 750 mallion shares of common stock outstanding. and its weighted averoge cost of capital (WAcC) equats 17.10\%h. Using the oreceding information and the FCF you calculated in the previnus cuestion, calculate the oppropenate velues in this table, Assime the firm has no nonaperating assees