Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a company with $60 million in revenues, operating margin of 75%, net margin of 45%, tax rate of 25%, depreciation and amortization expense

image

Consider a company with $60 million in revenues, operating margin of 75%, net margin of 45%, tax rate of 25%, depreciation and amortization expense of $13.5 million, capital expenditures of $15 million, acquisition expenses of $2 million, and an increase in net working capital of $2.5 million. How much free cash flow did this company generate? O a. $27.8 million O b. $29.6 million O c. $30.9 million O d. $32.3 million O e. $33.2 million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the free cash flow of the company we can use the formula Free Cash Flow Operating Incom... 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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

11th Canadian edition Volume 2

1119048540, 978-1119048541

More Books

Students also viewed these Finance questions