Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm has sales of $50,000 , EBIT of $10,000 , depreciation of $4,000 , and fixed assets increased by $2,000 . If the firm's

A firm has sales of

$50,000

, EBIT of

$10,000

, depreciation of

$4,000

, and fixed assets increased by

$2,000

. If the firm's tax rate is 30 percent and there was a

$1,000

increase in net operating working capital, what is the firm's free cash flow?\

$1,200

\

$10,000

\

$9,000

\

$8,000
image text in transcribed
A firm has sales of $50,000, EBIT of $10,000, depreciation of $4,000, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and there was a $1,000 increase in net operating working capital, what is the firm's free cash flow? $1,200 $10,000 $9,000 $8,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

Describe the two classifications of customer performance measures.

Answered: 1 week ago

Question

Define induction and what are its objectives ?

Answered: 1 week ago

Question

Discuss the techniques of job analysis.

Answered: 1 week ago

Question

How do we do subnetting in IPv6?Explain with a suitable example.

Answered: 1 week ago

Question

Explain the guideline for job description.

Answered: 1 week ago

Question

What is job description ? State the uses of job description.

Answered: 1 week ago

Question

6. Are my sources reliable?

Answered: 1 week ago

Question

5. Are my sources compelling?

Answered: 1 week ago