12. A firm's total Free Cash Flow forthe year equaled $4,400. Theyreported an EBIT of $5,000,Depreciation Expense of $1,200, andCapital Expenditures of $2,500. Theircorporate tax rate is 40%. How muchwas their change in net workingcapital for the year?Increase by $1700Decrease by $2700Increase by $3,100Decrease by $3,100None of the above

Free cash flow = $4400 EBIT = $5000 Depreciation = $1200 Capital expenditure = $2500 Tax rate = 40%…

12. A firm's total Free Cash Flow for the year equaled $4,400. They reported an EBIT of $5,000, Depreciation Expense of $1,200, and Capital Expenditures of $2,50O. Their corporate tax rate is 40%. How much was their change in net working capital for the year? * Increase by $1700 Decrease by $2700 Increase by $3,100 Decrease by $3,100 None of the above

12. A firm's total Free Cash Flow for the year equaled $4,400. They reported an EBIT of $5,000, Depreciation Expense of $1,200, and Capital Expenditures of $2,50O. Their corporate tax rate is 40%. How much was their change in net working capital for the year? * Increase by $1700 Decrease by $2700 Increase by $3,100 Decrease by $3,100 None of the above

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 8EP

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