Question
A firm's net income is $32 million, depreciation is $4 million, its investments in fixed capital totals $11 million, its before-tax interest totals $4 million
A firm's net income is $32 million, depreciation is $4 million, its investments in fixed capital totals $11 million, its before-tax interest totals $4 million and its investment in working capital totals $3 million. The tax rate is 40%. What is its Free Cash Flow to the Firm?
Question 4Answer
a.$26.00 million
b.$23.40 million
c.$25.00 million
d.$24.40 million
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
