Question
Given are the following data for year 1: Revenue = $150 million; Variable cost = $40 million; Fixed cost = $20 million; Depreciation = $10
Given are the following data for year 1: Revenue = $150 million; Variable cost = $40 million; Fixed cost = $20 million; Depreciation = $10 million; Interest expense = $15 million; capital Investment = $25 million; change in working capital = $5 million. Corporate tax rate is 30%. Calculate the free cash flow to firm (FCFF) for year 1:
| A. | $36 million. | |
| B. | $56 million. | |
| C. | $26 million. | |
| D. | $66 million. |
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Finance And Financial Markets
Authors: Keith Pilbeam
2nd Edition
1403948356, 978-1403948359
