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The Free Cash Flow to Firm (FCFF) is computed as $1050. The tax rate is zero. The amounts of depreciation, working capital, and increase in
The Free Cash Flow to Firm (FCFF) is computed as $1050. The tax rate is zero. The amounts of depreciation, working capital, and increase in working capital are $200, $100, and $50 respectively. Based on these data, the amount of EBIT should be:
a. $1050
b. $1000
c. More than $1050
d. Less than $1000
e. More than $1000 and less than $1050
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