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Q6. In computing the FCF (free cash flow), which variable is irrelevant a. EBIT b. Sales tax c. Interest expense d. Net working capital e.
Q6. In computing the FCF (free cash flow), which variable is irrelevant a. EBIT b. Sales tax c. Interest expense d. Net working capital e. All affect the free cash flow (FCF) The value of EBIT is 60% of sales. Estimated sales are $20,000,000. Depreciation is $70,000. Capital expenditures are 3% of sales. The increase in net working capital is $50,000. There are 1,000,000 shares outstanding. The tax rate is 20%. Q7. The free cash flow per share is: a. $.902 b. 90.20 c. $9.02 d. Less than $8.90 e. None of the above is correct. My answer is $
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