Gators Incorporated Has the Following Information for the Current Year

Multiple Choice

Gators Incorporated has the following information for the current year and projected for next year.Calculate its projected free cash flow to equity.(Assume new debt is added at the beginning of the year.) $\begin{array}{lr}&\text {Current}&\\&\text {year}&\text {Projected}\\ \text { FCF } & \text { NA } &\$1,000\\\text { Total debt } & \$ 400&\$600 \\\text { Interest rate on debt } & 6 \% & 6 \% \\\text { Tax rate } & 25 \%& 25 \%\end{array}$

A) $1,066
B) $1,173
C) $1,290
D) $1,419
E) $1,561