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Vasudevan Inc. recently reported operating income of $6.50 million, depreciation of $1.20 million, and had a tax rate of 25%. The firm's expenditures on fixed assets and net operating working capital totaled $0.60 million. How much was its free cash flow, in millions? a. $6.075 b. $6.675 c. $5.475 d. $7.700 e. $7.100

Vasudevan Inc. recently reported operating income of $6.50 million, depreciation of $1.20 million, and had a tax rate of 25%. The firm's expenditures on fixed assets and net operating working capital totaled $0.60 million. How much was its free cash flow, in millions? a. $6.075 b. $6.675 c. $5.475 d. $7.700 e. $7.100

Essentials Of Investments
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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Vasudevan Inc. recently reported operating income of $6.50 million, depreciation of $1.20 million, and had a tax rate of 25%. The firm's expenditures on fixed assets and net operating working capital totaled $0.60 million. How much was its free cash flow, in millions? a. $6.075 b. $6.675 c. $5.475 d. $7.700 e. $7.100
Transcribed Image Text:Vasudevan Inc. recently reported operating income of $6.50 million, depreciation of $1.20 million, and had a tax rate of 25%. The firm's expenditures on fixed assets and net operating working capital totaled $0.60 million. How much was its free cash flow, in millions? a. $6.075 b. $6.675 c. $5.475 d. $7.700 e. $7.100
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