Question
XYZ's Free Cash Flow (FCF) for 2019 is $200 million. 2020's EBIT forecast is $100 million. From 2019 to 2020, XYZ's operating current assets and
XYZ's Free Cash Flow (FCF) for 2019 is $200 million. 2020's EBIT forecast is $100 million. From 2019 to 2020, XYZ's operating current assets and current liabilities are expected to increase by $30 and $45 million, respectively. XYZ has no depreciable assets. Assuming a tax rate of 50 percent, what is XYZ's FCF for 2020?
| A. | $115.00 | |
| B. | $65.00 | |
| C. | $85.00 | |
| D. | $50.00 |
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The Handbook Of Equity Market Anomalies
Authors: Leonard Zacks
1st Edition
0470905905, 978-0470905906
