Question
Gerald, Inc. has an operating cash flow of $400,000 and a cash flow to creditors of $83,000 for the past year. During that time, the
Gerald, Inc. has an operating cash flow of $400,000 and a cash flow to creditors of $83,000 for the past year. During that time, the firm invested $50,000 in net working capital and incurred net capital spending of $100,000. What is the amount of the cash flow to stockholders for the last year, if the applicable tax rate if 36.8 percent?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
4th Edition
1439078084, 978-1439078082
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