A firm has sales of $10,901, EBIT of $3,621, depreciation of $3,681, and fixed assets increased...

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A firm has sales of $10,901, EBIT of $3,621, depreciation of $3,681, and fixed assets increased...

A firm has sales of $10,901, EBIT of $3,621, depreciation of $3,681, and fixed assets increased by $3,386. If the firm's tax rate is 30 percent and there were no increases in net working capital, what is the firm's free cash flow?

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Answer 1

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FCF EBIT (1-Tax rate)+Depreciation-Fixed investment-Working capital investment 3621*(1-0.3)+3681-3386-0 $ 2,829.70

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A firm has sales of $10,901, EBIT of $3,621, depreciation of $3,681, and fixed assets increased...