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A client has given you the following financial information for their company Small Tech Corporation ) for Year 1 and Year 2 . Assume the

A client has given you the following financial information for their company Small Tech
Corporation) for Year 1 and Year 2. Assume the tax rate is 20%
a) Calculate Net Working Capital for Year 1 and Year 2 for Small Tech Corporation.
b) Calculate the Operating Cash Flow for Year 2 for Small Tech Corporation.
c) Calculate the Free Cash Flow for Year 2 for Small Tech Corporation.
d) Calculate the Free Cash Flow to Creditors and the Free Cash Flow to Shareholders for
for Year 2 Small Tech Corporation.
e) Above we have $0 of interest expense for Small Tech Corporation. All else the same, if
interest expense was greater than $0, how would that affect, if at all, Small Tech
Corporation's Free Cash Flow to Shareholders we calculated? Briefly explain.
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