Consider the free cash flow approach to stock valuation. Utica Manufacturing Company is expected to have: Cash flow from operations

Consider the free cash flow approach to stock valuation. Utica Manufacturing 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 that they do not plan to do anything with. What is projected free cash flow to equity of Utica Co. for the coming year


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