Question
15. Charlies Angels, Inc. reported the following: Net income : $200 million Depreciation expense : $30 million Increase in payables : $10 million Increase in
15. Charlies Angels, Inc. reported the following:
Net income : $200 million
Depreciation expense : $30 million
Increase in payables : $10 million
Increase in receivables : $27 million
Decrease in inventory : $15 million
Investment in property, plant, and equipment:$50 million
What is the firms net investment in working capital?
A. $2 million B. $22 million
C. $52 million D. -$2 million
16. Please refer to the information in (15) above. What is the firms cash flow from operating activities?
A. $232 million B. $202 million
C. $252 million D. $228 million
17. Please refer again to the information in (15) above. What is the firms free cash flow (free cash flow to the firm)?
A. $282 million B. $178 million
C. $382 million D. $278 million
18. A firms free cash flow is estimated to be $10 next year. This cash flow is expected to grow at a rate of 2% forever. The firms WACC is 10% and net debt is $50. What is the value of the firm?
A. $95 B. $75
C. $100 D. $125
19. Please refer to information in (18) above. What is the value of the firms equity?
A. $45 B. $125
C. $75 D. $50
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COMMENT INVESTIR ABC DE LA FINANCE
Authors: OLIVIER CHAZOULE
1st Edition
2020367521, 978-2020367523
