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Frank is analysing Zisco Widgets in January of 2021. In 2020, cash flow from operations before interest and taxes was $2.9 million, and Zisco Widgets
Frank is analysing Zisco Widgets in January of 2021. In 2020, cash flow from operations before interest and taxes was $2.9 million, and Zisco Widgets expects this will grow by 2.5% per year forever. In order to do that, the firm must invest 35% of pretax cash flow each year.
The tax rate is 35%, and depreciation was $190,000 in 2020, which is expected to grow at the same rate as operating cash flow.
What is the FCFE for 2021?
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