Answer:
269 million
Explanation:
The free cash flow to the firm is 275 million
The interest expense is $60 million
The tax rate is 35%
The net debt of the firm increases by $33 million
Therefore the free cash flow to the equity holders of the firm can be calculated as follows
= 275 million-60 million(1-35/100) + 33 million
= 275 million- 60( 1-0.35) + 33 million
= 275 million- 60(0.65) +33 million
= 275 million - 39 million + 33 million
= 236 million + 33 million
= 269 million
