Simple RI In 2014, American Faucet Corporation (AFC) had earnings before interest and taxes of $100 million. AFC is subject to a tax rate of 37 percent. The book value and market value of AFC's common equity at the beginning of 2014 was $550 million and $350 million, respectively. AFC's debt had a book value of $225 million at the beginning and end of 2014 and the company pays 11 percent interest on its debt. The company's cost of equity capital is estimated to be 10 percent. Based on this information, AFC's residual income will be closest to: $ Number million Round your answer to two decimals

In 2014, American Faucet Corporation (AFC) had earnings before interest and taxes of $100 million. AFC is subject to a tax rate of 37 percent. The book value and market value of AFC's common equity at the beginning of 2014 was $550 million and $350 million, respectively. AFC's debt had a book value of $225 million at the beginning and end of 2014 and the company pays 11 percent interest on its debt. The company's cost of equity capital is estimated to be 10 percent. Based on this information, AFC's residual income will be closest to: million Round your answer to two decimals In 2014, American Faucet Corporation (AFC) had earnings before interest and taxes of $100 million. AFC is subject to a tax rate of 37 percent. The book value and market value of AFC's common equity at the beginning of 2014 was $550 million and $350 million, respectively. AFC's debt had a book value of $225 million at the beginning and end of 2014 and the company pays 11 percent interest on its debt. The company's cost of equity capital is estimated to be 10 percent. Based on this information, AFC's residual income will be closest to: million Round your answer to two decimals