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What's the FCFF of a company with total revenues of $700 million, operating profit margin of...

What's the FCFF of a company with total revenues of $700 million, operating profit margin of 54%, tax rate of 22% and reinvestment rate of 80%?

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Answer #1
Total Revenue= $ 700 Million
Operating Profit Margin= 54%
Tax Rate= 22%
Reinvestment Rate= 80%
EBIT= $ 700 million x 54%
EBIT= $ 378 million
Particulars Amount ( in $ million)
EBIT 378.00
Less: Tax @ 22 % 83.16
294.84
Less: Reinvestment rate @ 80% 235.87
(294.84x 80%)
FCCF 58.97
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