This year, FCF Inc. has earnings before interest and taxes of $9010 000,depreciation expenses of $700000, capital expenditures of $1 200000, andhas increased its net working capital by $ 525 000. If its tax rate is 38 %,what is its free cash flow?

To calculate the Free Cash Flow (FCF) for FCF Inc., we'll use the following formula:FCF=EBIT×(1−Tax…

Answered: This year, FCF Inc. has earnings before…

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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This year, FCF Inc. has earnings before interest and taxes of $9010 000, depreciation expenses of $700000, capital expenditures of $1 200000, and has increased its net working capital by $ 525 000. If its tax rate is 38 %, what is its free cash flow?