Dernham Inc. has an expected net operating profit after taxes, EBIT (1-T), of $10,000 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,500 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Dernham Inc. expected to generate over the next year? a. 11,455 b. 8,455 C. 342,226 d. 8,545
Dernham Inc. has an expected net operating profit after taxes, EBIT (1-T), of $10,000 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,500 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Dernham Inc. expected to generate over the next year? a. 11,455 b. 8,455 C. 342,226 d. 8,545
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Dernham Inc. has an expected net operating profit after taxes, EBIT (1-T), of $10,000 million in the
coming year. In addition, the firm is expected to have net capital expenditures of $1,500 million, and
net operating working capital (NOWC) is expected to increase by $45 million.
How much free cash flow (FCF) is Dernham Inc. expected to generate over the next year?
a. 11,455
b. 8,455
C. 342,226
d. 8,545
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