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Today is December 30, 2019. The following information applies to Harrison Airlines: After-tax operating income [EBIT(1 T)] for 2020 is expected to be $11.200 million
Today is December 30, 2019. The following information applies to Harrison Airlines:
- After-tax operating income [EBIT(1 T)] for 2020 is expected to be $11.200 million
- The depreciation expense for 2020 is expected to be $1.6 million
- The capital expenditures for 2020 are expected to be $2.4 million
- No change is expected in net working capital
- The free cash flow is expected to grow at a constant rate of 5.5% per year
- The required return on equity is 8.5%
- The WACC is 8.0%
- The firm has $1.6 million of non-operating assets.
- The market value of the companys debt is $70 million
- 4.3 million shares of stock are outstanding
What is the firms FCF? [include all the zeros]
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