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2. What is the company's Free Cash Flow (FCF)? Use the following information to answer the next few questions. Cash Accounts Receivable Inventory Gross Fixed
2. What is the company's Free Cash Flow (FCF)? Use the following information to answer the next few questions. Cash Accounts Receivable Inventory Gross Fixed Assets Less Accumulated Depreciation Total CA Net Fixed Assets Total Assets 2019 550 3500 3000 7050 7200 1400 5800 12850 XXX, Inc. Balance Sheet EBITDA Depreciation 2018 200 Accounts Payable 3500 Notes Payable 3500 7200 Long Term Debt 8500 15700 Dividend Paid 9500 Common Stock 1000 XXX, Inc. Income Statement EBIT Interest Expense EBT Taxes Net Income Total Liabilities Retained Earnings Total CL Common Equity Total Liab. & CE. 2019 3500 400 3100 800 2300 690 1610 3230 2019 1700 1000 2700 3970 6670 3100 3080 6180 12850 2018 1500 500 2000 6000 8000 3000 4700 7700 15700 a) What is the 2019 Free Cash Flow? b) Suppose the company's stock price is $7, and it has 1000 shares outstanding in 2019. What is the MVA in 2019? c) Suppose the company's after-tax percentage cost of capital is 12% in 2019. What is the EVA in 2019?
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