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What is the free cash flow for this company: Net Income = $500mm Equity comp = $500mm Depreciation = $1BN Average cost of debt funding
What is the free cash flow for this company:
Net Income = $500mm
Equity comp = $500mm
Depreciation = $1BN
Average cost of debt funding = 10%
Average book value of debt = $45BN
Tax expense = $100mm
Increase in accounts payable = $500mm
Increase in inventory = $1BN
Decrease in accounts receivable = $1BN
Net unrealized gain $1BN
This company is a bank and accounting rules require it to include certain unrealized gains and losses in net income
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