Alpha Manufacturing Has the Following Financial Information for the Current

Multiple Choice

Alpha Manufacturing has the following financial information for the current year and projected for next year.Calculate its projected free cash flow to equity. $$\begin{array} { l r r } &\text { Current } \\& { \text { year } } & \text { Projected } \\\text { EBIT } & \$ 1,500 & \$ 1,800 \\\text { Operating assets } & \$ 3,000 & \$ 3,400 \\\text { Operating liabilities } & \$ 200 & \$ 220 \\\text { Total debt } & \$ 1,500 & \$ 1,800 \\\text { Interest rate on debt } & 6 \% & 6 \% \\\text { Tax rate } & 25 \% & 25 \%\end{array}$$

A) $893
B) $983
C) $1,081
D) $1,189
E) $1,308