Question 18 0 / 1 point 4,578 1,750 1,320 Revenue EBITDA EBIT Statutory Tax Rate

Question

Question 18 0 / 1 point 4,578 1,750 1,320 Revenue EBITDA EBIT Statutory Tax Rate Interest Expense Pre-tax Income Taxes Net Income Capita Expenditures 300 1,020 357 663 337 Year NWC Level from balance sheet 2009 2010 3,600 3,200 The first table shows numbers for 2010. Calculate this company's 2010 Free Cash Flow to Equity (if you were an equity holder in the firm, how much money would you have available to take as dividends, buy back stock, and/or pay off principal on borrowings) given the Net Working Capital levels shown. Format $1,234 as 1234 Answer: 1,351 (1,146)

Explanation / Answer

Free cash flow to equity = Net income + amortisation and depreciation - capital expenditure - changes in working capital  

= $663 + $430 - $337 - $400

= $356.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.