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. $\begin{array}{lrr}&\text { Current }\\&\text { year } & \text { Projected } \\\text { FCF }&\text { NA } & 1,000 \\\text { Total debt }& 400 & 600 \\\text { Interest rate on debt }& 6 \% & 6 \% \\\text { Tax rate }& 25 \% & 250\end{array}$
 
 

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