Question
As a second task, you should look deeper into x a company that is currently in negotiations with one of your co-workers. To double-check her
As a second task, you should look deeper into "x" a company that is currently in negotiations with one of your co-workers. To double-check her calculations, you are given the following information about the company's P&L and other financial KPIs for 2020:
| Profit & Loss Statement (P&L) | 2020 |
| Sales | 100,000.00 |
| Cost of goods sold (COGS) | 22,500.00 |
| Selling, general and adminstrative expense (SG&A) | 16,000.00 |
| Depreciation and amortisation (D&A) | 10,500.00 |
| Interest expenses | 2,000.00 |
| Other expenses | 3,500.00 |
| Other financial data: | 2020 |
| Change of working capital | + 8,000.00 |
| Capital expenditure (CAPEX) | 2,000.00 |
| Debt repayments | 4,300.00 |
| New debt issues | 7,725.00 |
| Tax rate | 32.50 % |
1.qWhat is x's free cash flow in 2020?
2q. What is x's cash flow to debt holders in 2020?
3q. What is x's interest tax shield in 2020?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
