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Houston, Inc -What Is Houston's Free Cash Flow for Common Equity Holders

Question 10

Multiple Choice

Houston, Inc.
The following information pertains to Houston, Inc.a manufacturer of belt buckles:
 (dollar amounts in thousands)  Net Cash Flow from Operations Interest Expense after tax Decrease (Increase)  in Cash Required for Operations Net Cash Flow from Investing Net Cash from Debt FinancingPresent Value Factors for 8.5 % 2012201320142015201620175646288541059134516551221341481451551487554483261482873003102852942772102041408540460.9220.8490.7830.7220.665\begin{array}{l}\begin{array}{lll} \text { (dollar amounts in thousands) }\\ \text { Net Cash Flow from Operations}\\ \text { Interest Expense after tax}\\ \text { Decrease (Increase) in Cash}\\ \text { Required for Operations}\\ \text { Net Cash Flow from Investing}\\ \text { Net Cash from Debt Financing}\\\\ \text {Present Value Factors for 8.5 \% }\\\end{array}\begin{array}{lll}\underline {2012}&\underline {2013}&\underline {2014}&\underline {2015}&\underline {2016}&\underline {2017}\\ 564 & 628 & 854 & 1059 & 1345 & 1655 \\122 & 134 & 148 & 145 & 155 & 148 \\\\-75 & -54 & -48 & -32 & -61 & -48 \\-287 & -300 & -310 & -285 & -294 & -277 \\210 & 204 & 140 & 85 & -40 & -46 \\\\0.922 & 0.849 & 0.783 & 0.722 & 0.665 &\\\end{array}\end{array}
-What is Houston's free cash flow for common equity holders for year 2012?


A) $564
B) $399
C) $324
D) $412

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