Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134475561
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
Question
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Chapter 9, Problem 9P
Summary Introduction

Pro-forma earnings: Pro-forma earnings are computed after deducting all the expenses from the revenues. Subtracting all the expenses from the revenue results the amount which is called as net income or earning after tax.

Pro-forma free cash flow: Pro-forma free cash flow measures the ability of the firm to generate positive cash flow for smooth operation of the business.

To determine:

Pro-forma earnings and Pro-forma free cash flow

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