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Given the following data, Calculate Free Cash Flow to the Firm for 20x2: 20X1 20x2 EBIT...

  1. Given the following data, Calculate Free Cash Flow to the Firm for 20x2:

20X1

20x2

EBIT

1000

1200

Interest Expense

80

104

Depreciation Expense

180

200

Inventory

400

430

Accounts Payables

416

440

Accounts Receivables

504

450

Notes Payables

200

214

Capital Expenditures

200

250

Long Term Debt

11200

1190

Tax Rate

20%

20%
  1. For the same firm, what is free cash flow to Equity for 20X2?

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Expert Solution

jeff jeffy answered 2 years ago
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