Compute a French subsidiary's Free Cash Flow in Year 1, using the following information: EBIT = 200,000
Question:
Compute a French subsidiary's Free Cash Flow in Year 1, using the following information:
EBIT = 200,000 Euros
US Corporate income tax rate = 30%
French Corporate income tax rate = 40%
Year 1 depreciation = 25,000 Euros
Year 0 Net Working Capital = 50,000 Euros
Year 1 Net Working Capital = 70,000 Euros
Free Cash FlowFree cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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