1) Assume there is a company with (all next years estimates): EBIT of $6,500,000. A...

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1) Assume there is a company with (all next years estimates):

EBIT of $6,500,000.

A tax rate of 25%

Depreciation expenses of $250,000.

Capital expenditures of $300,000.

Net Working capital last year of $700,000 and this coming year of $850,000.

->What is this companys free cash flow?

1) Assume there is a company with (all next years estimates):

EBIT of $6,500,000.

A tax rate of 25%

Depreciation expenses of $250,000.

Capital expenditures of $300,000.

Net Working capital last year of $700,000 and this coming year of $850,000.

->What is this companys free cash flow?

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