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You have been asked to review the free cash flow to the firm computation made by an analyst for Stark Stores Inc., a small publicly

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You have been asked to review the free cash flow to the firm computation made by an analyst for Stark Stores Inc., a small publicly traded retail company. Estimate the correct Free Cash Flow to the Firm. Analyst Estimate Last Year (in millions) Notes Revenue $1,200.00 Includes $ 100 million in operating lease expenses. The firm has $80 million in lease commitments each -Operating Expenses $600.00 year for the next 5 years an a pre-tax cost of debt of 5%. Operating Income -Interest Expense Taxable Income $600.00 $150.00 $450.00 $157.50 $292.50 $100.00 -Taxes Paid Marginal Tax Rate on taxable income. Net Income +Depreciation -CAPEX $200.00 Did not include stock based acquisition of $50 million. Includes increase in cash balance of $10 million. -Increase in WC $50.00 $142.50 FCFF Input your answer in the same number format as the chart above (use 50 for 50 million)

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