After-tax return on capital

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Reference no: EM13963222

Cello is a manufacturer of pianos. It earned an after-tax return on capital of 10 percent last year and expects to maintain this next year. If the current year's after-tax operating income is $100 million and the firm reinvests 50 percent of this income back, estimate the FCFF next year. (After-Tax Operating Income = EBIT (1 - t)].

Reference no: EM13963222

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