A firm has sales of $50,000, EBIT of $10,000, depreciation of $4,000, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and there was a $1,000 increase in net operating working capital, what is the firm's free cash flow? O $1,200 $10,000 $9,000 $8,000

A firm has sales of $50,000, EBIT of $10,000, depreciation of $4,000, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and there was a $1,000 increase in net operating working capital, what is the firm's free cash flow? O $1,200 $10,000 $9,000 $8,000

Name: Vijay A firm has sales of $50,000, EBIT of $10,000, depreciation of $4
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Description: Vijay A firm has sales of $50,000, EBIT of $10,000, depreciation of $4,000, and fixed assets increased by$2,000. If the firm's tax rate is 30 percent and there was a $1,000 increase in net operating workingcapital, what is the firm's free cash flow?$

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 9P: Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current...

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