Question
Stock market analyst has forecasted the following year-end numbers for Raedebe Technology: Sales=$70 million; EBITDA=$20 million; Depreciation=$7 million; Amortization=$0. The company's tax rate is 40
Stock market analyst has forecasted the following year-end numbers for Raedebe Technology: Sales=$70 million; EBITDA=$20 million; Depreciation=$7 million; Amortization=$0. The company's tax rate is 40 percent. The company does not expect any changes in its net operating working capital. This year the company's planned gross capital expenditures will total $12 million. (Gross capital expenditures represent capital expenditures before deducting depreciation.) What is the company's forecasted free cash flow for the year?Answers
$2.8 million
$7.0 million
$8.0 million
$12.8 million
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
