Use the following data for a home health firm to answer questions. (Show work please and thank you)
Net income after taxes $1,000,000
Depreciation 3,00,000
Interest 1,00,000
Capital Expenditures 400,000
Working capital expenditures 500,000
Long-term debt 1,000,000
Income taxes 400,000
1. What is the current value of free cash flow?
2. Using a 20 EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), what is the value of the firm's equity?