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Suppose your answer to the previous question was X. What would be your answer if instead of $5 million. the interest expense was $15 million?
Suppose your answer to the previous question was X. What would be your answer if instead of $5 million. the interest expense was $15 million? (Note that this would imply:r a pre-tax income of $15 million, an income tax of $3 million, and a net income of $12 million.) (\"I X- 10 -'_\"- x-s Question 4 1 pts Below is a pro forma income statement for the next year {year 1]. Everything is in million $. Year 1 Revenue 120 Cost 70 EBITDA 50 Depreciation 20 EBIT 30 Interest Expense 5 Pre-Tax Income 25 Income tax 5 Net Income 20 The company will not have any capital expenditures in year 1. but it will increase the level of NWC from $10 million [in year 0 J to $12.1 million in year 1. The corporate tax rate is 20%. What is the free cash ow in year 1? Write your answer in million dollars with 1 digit after the decimal point. For example, if the answer is $3.2 million. just write 3.2
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