Q6. In computing the FCF (free cash flow), which variable is not relevant?

a. EBIT

b. Tax rate

c. Interest expense

d. Net working capital

e. None of the above

Q10. Refer to the equation we discussed for computing the FCF (free cash flow.) An increase in the net working capital, holding other variables constant, will

a. increases the FCF

b. Decreases the FCF

c. May increase or decrease FCF

d. increase stock price

e. both a and d