Kathleen murray, who is unmarried and has no children, has added up her taxable income for 2017 but needs calculating how much tax she owes. she asks you how much tax she will have to pay on her $45,000 of taxable income, which includes $3,000 of dividends paid by a u. s. corporation and $2,000 of gains from the sale of 100 shares of stock she had held for more than one year. what do you tell her?
a. $5,738.75
b. $5,988.75
c. $6,488.75
d. $6,988.75

Assume today is december 31, 2013. barrington industries expects that its 2014 after-tax operating income [ebit(1 – t)] will be $400 million and its 2014 depreciation expense will be $70 million. barrington's 2014 gross capital expenditures are expected to be $120 million and the change in its net operating working capital for 2014 will be $25 million. the firm's free cash flow is expected to grow at a constant rate of 4.5% annually. assume that its free cash flow occurs at the end of each year. the firm's weighted average cost of capital is 8.6%; the market value of the company's debt is $2.15 billion; and the company has 180 million shares of common stock outstanding. the firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. using the corporate valuation model, what should be the company's stock price today (december 31, 2013)? round your answer to the nearest cent. do not round intermediate calculations.