Question
Apple has EBITDA of $1,250 million. The company's depreciation expense is $300 million. Apple is 100% equity financed, and it faces a 40% tax rate.
Apple has EBITDA of $1,250 million. The company's depreciation expense is $300 million. Apple is 100% equity financed, and it faces a 40% tax rate. In addition, the firm's net investment in operating capital is $500 million. (Show your work).
a. What is the company's net income?
b. What is its net cash flow?
c. What is its operating cash flow?
d. What is its net operating profit after taxes?
e. What is free cash flow (FCF) and calculate FCF for Newco?
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
