Question: Please explain with detail. I want to learn how to do these questions on my own. I just don't want the answer.
Whirlpool this year will have an EBIT of $200, depreciation of $30, capital expenditures of $150, and an increase in net working capital of $10. To finance their investments, Whirlpool will raise $50 in debt, which will have an interest rate of 6%. What is the free cash flow to equity if Whirlpool has a tax rate of 25%?