Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2019 ABC company had EBIT of $30 million and depreciation of $5 million. The tax rate was 40% If the change in NOWC was

In 2019 ABC company had EBIT of $30 million and depreciation of $5 million. The tax rate was 40% If the change in NOWC was $8 million and the capital expenditures were $8 million for 2019 what was the Free Cash flow for ABC company?
Select one:
a. $7 million
b. $19 million
c. $ 41 million
d . $ 35 million
image text in transcribed
In 2019 ABC company had EBIT of $30 million and depreciation of $5 million. The tax rate was 40% If the change in NOWC was $8 million and the capital expenditures were \$8 million for 2019 what was the Free Cash flow for ABC company? Select one: a. $7 million b. $19 million c. $41 million d. $35 million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Profit First For Lawn Care And Landscape Businesses

Authors: Christeen Era, Steven A Rigolosi, Mike Michalowicz

1st Edition

0578908158, 978-0578908151

More Books

Students also viewed these Finance questions