Question
Question) A firm reports EBIT of $100 million. The income statement shows depreciation of $20 million. If the tax rate is 35%, total capital expenditures
Question) A firm reports EBIT of $100 million. The income statement shows depreciation of $20 million. If the tax rate is 35%, total capital expenditures are $5 million, and the increase in non-cash working capital is equal to $10 million, what is the free cash flow to the firm today?
A) $57 B) $65 C) $70 D) $95
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Handbook Of Quantitative Finance And Risk Management
Authors: Cheng-Few Lee, John Lee
2010th Edition
0387771166, 978-0387771168
