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The Free Cash Flow Model: (1) EBIT = $166,000; Depreciation = $36,000 (2) The new investments in operating assets is $30,000 (3) Non-operating assets =

The Free Cash Flow Model:

(1) EBIT = $166,000; Depreciation = $36,000

(2) The new investments in operating assets is $30,000

(3) Non-operating assets = $21,000

(4) Debt = $500,000; WACC = 10.2%

(5) FCF growth rate = 8.8%; Tax rate = 29%

(6) # of outstanding shares = 300,000

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