Question
Your event electric company is thinking about putting in a hydro-electric plant. The first year pro-forma accounting projections for the plant are: Item Year 1
Your event electric company is thinking about putting in a hydro-electric plant. The first year pro-forma accounting projections for the plant are:
| Item | Year 1 |
| Capital Expenditure | $0 |
| Change in Working Capital | $2,400 |
| Sales Revenue | $60,000 |
| Operating Expenses | $40,000 |
| Depreciation | $5,000 |
| EBIT | $15,000 |
If the tax rate is 21%, what is the free cash flow available to the owners of the company?
a. $16,850
b. $17,600
c. $19,250
d. $14,450
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How To Trade In Stocks
Authors: Jesse Livermore
1st Edition
0071469796, 9780071469791
