Mountain Corp's EBIT is $600, its tax rate is 25%, depreciation is $24, capital expenditures are $85, and the planned increase in net working capital is $35. What is the free cash flow to the firm?
Mountain Corp's EBIT is $600, its tax rate is 25%, depreciation is $24, capital expenditures are $85, and the planned increase in net working capital is $35. What is the free cash flow to the firm?
Chapter2: Financial Statements, Cash Flow, And Taxes
Section2.8: Performance Evaluation
Problem 1ST
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Transcribed Image Text:Mountain Corp's EBIT is $600, its tax rate is 25%,
depreciation is $24, capital expenditures are $85, and the
planned increase in net working capital is $35. What is the
free cash flow to the firm?
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