2. (10 percent) Wukong Inc. recently reported operating income (EBIT) of $3.75 million, depreciation ofS1.40 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating workingcapital totaled S0.8 million. How much was its free cash flow. in millions?

Free Cash Flow (FCF) indicates the amount of cash generated each year that is free from all…

Answered: 2. (10 percent) Wukong Inc. recently…

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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DataDyne Company reported EBIT of $590 million for the most recent fiscal year. Interest expense were $10 million and the current tax rate was 20%. The firm had depreciation expenses of $100 million and capital expenditures of $150 million. In addition, the firm did have a decrease in net working capital of $30 million. What is DataDyne's free cash flow?
The Dog House has sales of $502,000, and depreciation of $47,000. The firm is entirely equity-financed and has a profit margin of 5% and tax rate of 35%. What is the amount of the operating cash flow?
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10. Intellus has long-term debt of $5 million, owners' equity of $7.75 million, current assets of $1 million, gross fixed assets of $20 million, and accumulated depreciation of $7 million. What is the firm's net working capital?
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Ehrlich & Czarnecki Consulting, Inc. recently reported the following information: Net income = $800,000 Sales = $4,200,000 Total Assets = $9.5 million Tax rate = 40% Interest expense = 20,000 Accounts Payable = 36,000 Notes Payable = 300,000 Accruals = 50,000 After-tax cost of capital = 11% What is the company’s EVA? $-296,358 $-223,540 $-452,391 $-488,029 None of the above is within $100 of the correct answer.
Marine Outlets, Inc. had $ 14 million in sales last year, COGS of $ 8 million, depreciation expense of $ 2 million, $ 1 million in interest payments on long-term debt. If the firm's “tax rate” is 35%, how much is the Firm's Net Income?
A firm has EBIT of $275 million, which is net of $52 million in depreciation. In addition, the firm had $81 million in capital expenditures and an increase in net working capital of $5 million. The firm's tax rate is 21 percent. The firm's FCF is closest (in millions) to:
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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?