Use the Following Information to Answer the Question(s)below

question 94

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries is expected to generate free cash flows of $24 million per year.Galt has permanent debt of $80 million,a corporate tax rate of 21%,and an unlevered cost of capital of 12% and its cost of debt capital is 6%.
-Galt's free cash flow to equity (FCFE) is closest to:

• A)$19.2 million.
• B)$23.4 million.
• C)$20.2 million.
• D)$24.0 million.

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Definitions:

Schopenhauer

A German philosopher best known for his pessimistic philosophy and the concept of the will as the underlying force of the world.

The Will

The Will is the faculty of conscious and deliberate choice or decision-making, often considered as part of human psychology or philosophy.

It's Beautiful

A subjective expression of admiration towards something that one perceives as aesthetically pleasing.

Aesthetic Values

The qualities that determine the beauty, artistry, or appreciation of works of art and nature, often subjective and varying across cultures.