Question
Consider the following data with regards to free cash flow (FCF): Revenue = $106,608 Cash operating expenses = $65,511 Depreciation expense = $950 Effective tax
Consider the following data with regards to free cash flow (FCF):
- Revenue = $106,608
- Cash operating expenses = $65,511
- Depreciation expense = $950
- Effective tax rate = 23%
- Incremental investment in operating net working capital = $73
- Incremental investment in long-term operating assets = $3,820
If the incremental investment in operating net working capital was to increase by 6% but everything else remains as shown above, how much would free cash flow change? Assume no other factors change.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The free cash flow FCF can be calculated using the following formula FCF Rev...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
