2. (10 percent) Wukong Inc. recently reported operating income (EBIT) of $3.75 million, depreciation of $1.40 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totaled S0.8 million. How much was its free cash flow, in millions?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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2. (10 percent) Wukong Inc. recently reported operating income (EBIT) of $3.75 million, depreciation of
S1.40 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working
capital totaled S0.8 million. How much was its free cash flow. in millions?
Transcribed Image Text:2. (10 percent) Wukong Inc. recently reported operating income (EBIT) of $3.75 million, depreciation of S1.40 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totaled S0.8 million. How much was its free cash flow. in millions?
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