Question
Intel corp. reported operating income (EBIT) equals to BDT 4,50,000 this year . Tax rate was 10 percent. The depreciation expense was BDT 25,000. and
Intel corp. reported operating income (EBIT) equals to BDT 4,50,000 this year . Tax rate was 10 percent. The depreciation expense was BDT 25,000. and new investment in asset was BDT 2,50,000 during the year while changes in net working capital was BDT 50,000.
a) Calculate
( I) Operating cash now. (2) Free cash flow.
b) If you are a bondholders or equity holder, which ratio you focus more- operating or free cash flow?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The New Public Finance
Authors: Inge Kaul, Pedro Condeicao
1st Edition
0195179978, 978-0195179972
