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Using information in the table below estimate the Free cash flow to firm. The firms marginal tax rate is 40%. Revenues 600 -Operating expenses 500
Using information in the table below estimate the Free cash flow to firm. The firms marginal tax rate is 40%.
Revenues | 600 |
-Operating expenses | 500 |
-Depreciation | 15 |
=EBIT | 85 |
- Interest Expense | 10 |
-Taxes | 30 |
= Net income | 45 |
Change in NWC working capital | 10 |
Principal repayment | 15 |
Capital expenditures | 20 |
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