Grove Inc. is a publicly traded chemical company that reported the following financial statements for the most recent year. Income Statement: Most recent year (in $ millions) Revenues $1000 -...

Grove Inc. is a publicly traded chemical company that reported the following financial statements for the most recent year.

Income Statement: Most recent year (in $ millions)

Revenues $1000

- Operating Expenses (includes $150 million in depreciation)

EBIT $250

- Interest Expense $50

Taxable Income $200

- Taxes $60

Net Income $140

Balance Sheet: Start of Year

Cash: $-

Other Current Assets $1000

Fixed Assets $1250

Total Assets $2,250

Current Liabilities $500

Debt $250

Equity $1500

Total Liabilities $2250

Assuming that this company will maintain its existing after-tax return on capital next year and that it expects operating income to grow 6% over the year, estimate the expected free cash flow to the firm next year. (The company's effective tax rate this year is not expected to change next year).

A. $58.30

B. $74.20

C. $90.10

D. $153.70

E. $265.00