1. GoPro's earnings before interest and taxes (EBIT) was $190 million. Assuming GoPro's tax rate is 35%, what is their net operating profit after taxes (NOPAT) for 2014 expressed in million of dollars?

2. In 2014, GoPro spent $27.5 million on capital expenditures, experienced an increase in net working capital (including cash) equal to $239 million, and realized $18 million in depreciation. What is GoPro's unlevered free cash flow for 2014?

3. What does a negative value for unlevered free cash flow imply for the claimants of a firm?

(a) Revenues are less than costs

(b) Shareholders have made a bad investment

(c)The firm must raise capital from the capital markets (e.g., debt, equity), or liquidate internal assets (e.g., cash)

(d) The firm is overinvesting

(e) Management is doing a bad job

4. When a firm changes its capital structure by issuing or retiring debt, for example, this change alters the firms unlevered free cash flow. Is it False or True