contestada

This​ year, FCF Inc. has earnings before interest and taxes of ​$10 comma 400 comma 000​, depreciation expenses of ​$1 comma 000 comma 000​, capital expenditures of ​$1 comma 900 comma 000​, and has increased its net working capital by $ 575 comma 000. If its tax rate is 30 %​, what is its free cash​ flow?

Respuesta :

hyderali230

Answer:

Free cash flow is $8,925,000

Explanation:

Free cash flow is the net cash cashflow available for the shareholders or for the reinvestment after paying all capital expenditure.

Free Cash flow

Earning Before Interest and Tax            $10,400,000

Add: Depreciation expenses                  $1,000,000

Less: Capital expenditures                      ​$1,900,000

Less: Increase in net working capital     $575,000    

Free cashflow                                           $8,925,000

Otras preguntas