You have gathered this information on a firm: $500,000 sales, $10,000 cash dividends, $300,000 cost of goods

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You have gathered this information on a firm:

$500,000 sales,

$10,000 cash dividends,

$300,000 cost of goods sold,

$20,000 administrative expense,

$20,000 depreciation expense,

$40,000 interest expense,

$40,000 purchase of productive equipment,

$600 addition to net working no changes in working capital,

tax rate of 21%.

What is the free cash flow?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

See More Books

Posted Date: Oct 12, 2023 02:19 AM

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You have gathered this information on a firm: $500,000 sales, $10,000 cash dividends, $300,000 cost of goods

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Expert Answer:

To calculate the free cash flow FCF you can use the following formula FCF N... View the full answer

Fundamentals of Corporate Finance

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