Question
Net Income After Taxes $1,000,000 Depreciation $300,000 Interest $100,000 Capital Expenditures$400,000 Working Capital Expenditures$500,000 Long-Term Debt $1,000,000 Income Taxes $400,000 Use the following data for
Net Income After Taxes $1,000,000
Depreciation $300,000
Interest $100,000
Capital Expenditures$400,000
Working Capital Expenditures$500,000
Long-Term Debt $1,000,000
Income Taxes $400,000
Use the following data for these 2 questions.
1.What is the current value of free cash flow?
2.Using a 20 EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), what is the value of the firm's equity?
Thank you for your assistance with this problem.
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
