Gamma Pharmaceuticals Has the Following Financial Information for the Current

Gamma Pharmaceuticals has the following financial information for the current year and projected for next year. Calculate Gamma's projected free cash flow to equity. $\begin{array} { l l r r } & { \text { Curtent } } & \\& \text { year } & \text { Projected } \\\text { NOPAT } & \text { NA } & 1,000 \\\text { Tatal aperating capital } & 2,000 & 2,200 \\\text { Tetal debt } & 900 & 800 \\\text { Interest rate an debt } & 6 \% & 6 \% \\\text { Tar rate } & 25 \% & 25 \%\end{array}$
 
 

A) $549
B) $604
C) $664
D) $730
E) $803

Correct Answer:

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