Consider a company with revenues of $20 million this year. The company is projected to grow its
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Question:
- Consider a company with revenues of $20 million this year. The company is projected to grow its revenues 10% over the next year.
- What is its projected free cash flow next year, if it is forecasted to have the following characteristics?
- Operating margin: 60%.
- Tax rate: 15%.
- Reinvestment rate: 45%.
- Assume that the company has no non-operating income, so that EBIT = Operating income
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
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