What is projected free cash flow to equity

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Reference no: EM13872158

What is projected free cash flow to equity for the coming year?

-Company is expected to have cash flow from operations of $500,000 in the coming year. Depreciation for the year will be $100,000. The firm's corporate tax rate is 30%.

-It is expected that $200,000 of operating cash flow will be invested in new fixed assets.

-Cash flows are expected to grow at 6% per year.

-The appropriate market capitalization rate is 15% per year.

-The firm has $1,000,000 in outstanding debt.

Reference no: EM13872158

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