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Calculate the FCF for a firm if it has operating cash flows of 800, CAPEX of 280, and a change in NWC of -24. Assume a tax rate of 40%. Hint: Even if an input value is negative, you still apply the formula with the minus signs. FCF = operating CF - CAPEX - change in NWC Also a reminder, FCF = CF from assets

Calculate the FCF for a firm if it has operating cash flows of 800, CAPEX of 280, and a change in NWC of -24. Assume a tax rate of 40%. Hint: Even if an input value is negative, you still apply the formula with the minus signs. FCF = operating CF - CAPEX - change in NWC Also a reminder, FCF = CF from assets

Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
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Calculate the FCF for a firm if it has operating cash flows of 800, CAPEX of 280, and a change in NWC of -24. Assume a tax rate of 40%.

Hint: Even if an input value is negative, you still apply the formula with the minus signs. FCF = operating CF - CAPEX - change in NWC

Also a reminder, FCF = CF from assets 

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