This year, FCF Inc. has earnings before interest and taxes of $9,520,000, depreciation expenses of $1,200,000, capital expenditures of $1,200,000, and has increased its net working capital by $575,000. If its tax rate is 30%, what is its free cash flow? 6,595,000 7,520,000 6,090,000 5,000,000

This year, FCF Inc. has earnings before interest and taxes of $9,520,000, depreciation expenses of $1,200,000, capital expenditures of $1,200,000, and has increased its net working capital by $575,000. If its tax rate is 30%, what is its free cash flow? 6,595,000 7,520,000 6,090,000 5,000,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 1P

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Question

Please show all equations and work as needed. Make the correct answer clear. If possible, please type work so it can be copied. Thank you.

This year, FCF Inc. has earnings before interest
and taxes of $9,520,000, depreciation expenses
of $1,200,000, capital expenditures of
$1,200,000, and has increased its net working
capital by $575,000. If its tax rate is 30%, what is
its free cash flow?
6,595,000
7,520,000
6,090,000
5,000,000

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