Gamma Pharmaceuticals Has the Following Financial Information for the Current

Multiple Choice

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. $$\begin{array} { l r r } & { \text { Current } } \\& \text { year } & \text { Projected } \\\text { NOPAT } & { \text { NA } } & \$ 1,000 \\\text { Total operating capital } & \$ 2,000 & \$ 2,200 \\\text { Total debt } & \$ 900 & \$ 800 \\\text { Interest rate on debt } & 6 \% & 6 \% \\\text { Tax rate } & 25 \% & 25 \%\end{array}$$

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