This year, FCF Inc. has earnings before interest and taxes of $9,520,000, depreciation expenses of $1,200,000, capital expenditures of $1,200,000, and has increased its net working capital by $575,000. If its tax rate is 30%, what is its free cash flow? 6,595,000 7,520,000 6,090,000 5,000,000
This year, FCF Inc. has earnings before interest and taxes of $9,520,000, depreciation expenses of $1,200,000, capital expenditures of $1,200,000, and has increased its net working capital by $575,000. If its tax rate is 30%, what is its free cash flow? 6,595,000 7,520,000 6,090,000 5,000,000
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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Transcribed Image Text:This year, FCF Inc. has earnings before interest
and taxes of $9,520,000, depreciation expenses
of $1,200,000, capital expenditures of
$1,200,000, and has increased its net working
capital by $575,000. If its tax rate is 30%, what is
its free cash flow?
6,595,000
7,520,000
6,090,000
5,000,000
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