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Two baisc Financial Accounting Problems: Thank you! 6. A firm reported the following nancial statement items: millions Net income 2,100 Non-cash charges 400 Interest expense

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Two baisc Financial Accounting Problems: Thank you!

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6. A firm reported the following nancial statement items: millions Net income 2,100 Non-cash charges 400 Interest expense 300 Capital expenditures 250 Working capital expenditures 0 Net borrowing 1,600 Tax rate 40% The free cash flow to the firm (F CFF, in millions) is: 7. A company's data are provided in the following table: Cost of debt 10% Cost of equity 16% Debt-to-equity ratio (D/E) 50% Tax rate 30% The weighted average cost of capital (WACC) is: %

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