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Grey Fox Aviation Company has an expected net operating profit after taxes, EBIT x (1 – Tax rate), of $13,800,000 in the coming year. In addition, the firm is expected to have net capital expenditures of $2,070,000, and the firm's net operating working capital (NOWC) is expected to increase by $25,000. Grey Fox expects to generate$11,705,000 in free cash flow (FCF) over the next year (rounded to the nearest whole dollar). Grey Fox ’s FCFs are expected to grow at a constant rate of 3.12% per year in the future. The market values of Grey Fox ’s outstanding debt and preferred stock are $84,411,058 and $46,895,032, respectively. Grey Fox Aviation Company has 375,000 shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 9.36%. Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table (again, rounded to the nearest whole dollar).

Financial Management, Finance

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