A firm has EBIT of $275 million, which is net of $52 million indepreciation. In addition, the firm had $81 million in capitalexpenditures and an increase in net working capital of $5 million.The firm's tax rate is 21 percent. The firm's FCF is closest (inmillions) to:

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Answered: A firm has EBIT of $275 million, which…

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

Section: Chapter Questions

Problem 1PS

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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: