Rehman 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 Rehman Inc. expected to generate over the next year?

Financial Management: Theory & Practice
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ISBN:9781337909730
Author:Brigham
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Chapter7: Corporate Valuation And Stock Valuation
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Rehman 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 Rehman Inc. expected to
generate over the next year?
Transcribed Image Text:Rehman 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 Rehman Inc. expected to generate over the next year?
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