EBK CORPORATE FINANCE
4th Edition
ISBN: 8220103164535
Author: DeMarzo
Publisher: PEARSON
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Question
Chapter 8, Problem 6P
Summary Introduction
To determine: The
Introduction: Free cash flow is the difference between the operating cash flow and capital expenditure. Free cash flow is the cash available to all investors in a company, including the common stockholders.
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Students have asked these similar questions
Company DotThrive reported the following financial results.
Operating income is $61.32 million and depreciation and amortization is $6.84 million. The company spent $11.69 million buying new equipment and sold $4.50 million old equipment (this is the after-tax salvage). Net working capital increased by $2.63 million from previous year. The company's tax bracket is 21%.
What's the company's Free Cash Flow (FCF) for the year?
Note: the unit of your answer should be in millions of dollars, with 2 decimal points.
Atlantic Telecom reported net income of $250.4 million for the most recent fiscal year. The firm had CCA deductions
of $108.3 million (assume reported depreciation was equal to this CCA), capital expenditures of $195.1 million, and
no interest expenses. NWC increased by $9.5 million. Calculate the free cash flow for Atlantic Telecom for the most
recent fiscal year.
Cellular Access, Inc., a cellular telephone service provider, reported net income of $258.6 million for the most recent fiscal year. The firm had depreciation expenses of
$101.7 million, capital expenditures of $190.7 million, and no interest expenses. Net working capital increased by $9.4 million. Calculate the free cash flow for Cellular
Access for the most recent fiscal year.
The free cash flow is $
million. (Round to one decimal place.)
Chapter 8 Solutions
EBK CORPORATE FINANCE
Ch. 8.1 - How do we forecast unlevered net income?Ch. 8.1 - Prob. 2CCCh. 8.1 - Prob. 3CCCh. 8.2 - Prob. 1CCCh. 8.2 - What is the depreciation tax shield?Ch. 8.3 - Prob. 1CCCh. 8.3 - Prob. 2CCCh. 8.4 - Prob. 1CCCh. 8.4 - What is the continuation or terminal value of a...Ch. 8.5 - Prob. 1CC
Ch. 8.5 - How does scenario analysis differ from sensitivity...Ch. 8 - Pisa Pizza, a seller of frozen pizza is...Ch. 8 - Kokomochi is considering the launch of an...Ch. 8 - Home Builder Supply, a retailer in the home...Ch. 8 - Hyperion, Inc. currently sells its latest...Ch. 8 - Table 8.1 Spreadsheet HomeNets Incremental...Ch. 8 - Prob. 6PCh. 8 - Castle View Games would like to invest in a...Ch. 8 - Prob. 9PCh. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - A bicycle manufacturer currently produces 300,000...Ch. 8 - One year ago, your company purchased a machine...Ch. 8 - Prob. 15PCh. 8 - Markov Manufacturing recently spent 15 million to...Ch. 8 - Prob. 17PCh. 8 - Arnold Inc. is considering a proposal to...Ch. 8 - Bay Properties is considering starting a...Ch. 8 - Prob. 21PCh. 8 - Prob. 22P
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