Caballos, Inc., has a debt to capital ratio of 14%, a beta of 1.92 and a pre-tax cost of debt of 7%. The firm had earnings before interest and taxes of $ 514 million for the last fiscal year, after depreciation charges of $ 253 million. The firm had capital expenditures of $ 394 million, and non-cash working capital increased by $ 61 million. The firm also had a book value of capital of $ 1.5 billion at the beginning of the last fiscal year. (The Treasury bond rate is 4.9 %, the market risk premium is 6.4 % and the firm has a tax rate of 40 %). Assume that the firm is in stable growth, and that the return on capital and reinvestment rates for the last fiscal year can be sustained forever. Estimate the FCFF.