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Acme Incorporated had $11,750 of sales, $6,500 of operating costs, and $1,250 of depreciation. The company had $3,500 of debt for which it pays 6.25%
Acme Incorporated had $11,750 of sales, $6,500 of operating costs, and $1,250 of depreciation.
The company had $3,500 of debt for which it pays 6.25% interest per year. Its total tax rate was 35%.
During the same period, the firm spent $1,600 on required fixed assets and additional operating working capital.
What was its free cash flow?
$1,873 | ||
$1,972 | ||
$2,250 | ||
$2,185 | ||
$2,300 |
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