In: Finance
ABC Corp, has a EBIT of $462,466. Their depreciation expense is $80,500, their net working capital increased by $17,970, and they spent $129,681 on capital assets. What is their unlevered cash flow if their tax rate is 0.35?
Unlevered cash flow = EBIT(1 - Tax rate) + Depreciation - Increase in Working Capital - Capital Expenditure
Unlevered cash flow = $462,466(1 - 0.35) + $80,500 - $17,970 - $129,681
Unlevered cash flow = $233,451.90