This year, FCF Inc. has earnings before interest and taxes of $9010 000, depreciation expenses of $700000, capital expenditures of $1 200000, and has increased its net working capital by $ 525 000. If its tax rate is 38 %, what is its 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
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This year, FCF Inc. has earnings before interest and taxes of $9010 000,
depreciation expenses of $700000, capital expenditures of $1 200000, and
has increased its net working capital by $ 525 000. If its tax rate is 38 %,
what is its free cash flow?
Transcribed Image Text:This year, FCF Inc. has earnings before interest and taxes of $9010 000, depreciation expenses of $700000, capital expenditures of $1 200000, and has increased its net working capital by $ 525 000. If its tax rate is 38 %, what is its free cash flow?
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