17

8 pts Question 17 Weasleys' Wizard Wheezes uses a WACC to discount its cash flows. Next year it expects to have earnings before interest, taxes and depreciation (EBITDA) of $20 million, Interest expenses of $3 million, depreciation expenses of $2 million, capital expenditures of $3.5 million and expects to increase its net working capital by $750,000, if its tax rate is 35% what free cash flow should it record for next year in its discounted cash flow analysis? $745 million $7.50 million $9.45 million $10.5 million