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:

Lust for Power

An intense desire or ambition to hold and exert power or control over others.

Articles of Confederation

The original constitution of the United States, ratified in 1781, which was replaced by the US Constitution in 1789.

Military Powers

The authorities and capabilities vested in a country's armed forces for defense, conflict resolution, and enforcement of national or international mandates.

Executive

refers to the branch of government responsible for implementing and enforcing laws, typically headed by a president or prime minister.