Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question

What is the company’s forecasted free cash flow for the year?

A stock market analyst has forecasted the following year-end numbers for Nation al Co.: Sales P70 million E BITDA P25 million Depreciation P 7 million Amortization P O The company's tax rate is 25 percent. The company does not expect any changes in its net operating working capital. This year the company's planned gross capital expenditures will total P12 million and planned increased in working capital of P5 million. (Gross capital expenditures represent capital expenditures before deducting depreciation.)
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Transcribed Image Text:A stock market analyst has forecasted the following year-end numbers for Nation al Co.: Sales P70 million E BITDA P25 million Depreciation P 7 million Amortization P O The company's tax rate is 25 percent. The company does not expect any changes in its net operating working capital. This year the company's planned gross capital expenditures will total P12 million and planned increased in working capital of P5 million. (Gross capital expenditures represent capital expenditures before deducting depreciation.)
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