Question
Merill Company manufactures SIM cards for cell phones. Based on the following information, what are the company's free cash flows to the firm (FCFF) for
Merill Company manufactures SIM cards for cell phones. Based on the following information, what are the company's free cash flows to the firm (FCFF) for the year ended December 31, Year 7?
| December 31 | Year 7 | Year 6 |
| Cash | $16,04 | $13,704 |
| Net operating working capital | $6,928 | $6,384 |
| Net long-term operating assets | $9,160 | $7,720 |
| Net nonoperating obligations (NNO) | $2,056 | $1,640 |
| Net operating profit after tax (NOPAT) | $4,896 | $4,392 |
| Discount factor | 5.0% | 5.0% |
| $4,944 | ||
| $4,352 | ||
| $5,440 | ||
| $6,880 | ||
| $2,912 |
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The Practical Guide To Wall Street Equities And Derivatives
Authors: Matthew Tagliani
1st Edition
0470383720, 978-0470383728
