Question
Given are the following data for year 1: Profits after taxes = $20 million; Depreciation = $6 million; Interest expense = $4 million; Investment in
Given are the following data for year 1:
Profits after taxes = $20 million; Depreciation = $6 million; Interest expense = $4 million; Investment in fixed assets = $12 million; Investment in working capital = $4 million. The corporate tax rate is 25 percent. Calculate the free cash flow (FCF) for year 1.
A. $4 million
B. $6 million
C. $8 million
D.$13 million
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Cases In Healthcare Finance
Authors: George H. Pink, Paula H. Song
7th Edition
1640553177, 978-1640553170
