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(2-15) FREE CASH FLOW Financial information on Marine Tech Corporation is presented below. During the year, Marine Tech made a net investment in operating capital
(2-15) FREE CASH FLOW Financial information on Marine Tech Corporation is presented below. During the year, Marine Tech made a net investment in operating capital of $30 million. If the company's share price is $22, it has 10 million shares outstanding, and its tax rate is 30%, does Marine Tech have sufficient free cash flow to repurchase 10% of its shares? Answer: No, $19,000,000 available; $22,000,000 needed
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