Financial information on Marine Tech Corporation is presented below. During the year, Marine Tech made a net

Question:

Financial information on Marine Tech is presented below. During the year, Marine Tech made a net investment in operating capital of $30 million. If the company's share price is $22, it has 10 million shares outstanding, and its tax rate is 30%, does Marine Tech have sufficient to repurchase 10% of its shares?
Marine Tech Income Statement($ M)
Sales ....................................................................... $320
Operating costs ............................................................220
Depreciation ............................................................... 20
EBIT ........................................................................ 80
Interest expense .......................................................... 10
Earnings before tax ...................................................... 70
Tax (30%) ................................................................. 21
Earnings after tax......................................................... $ 49 Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Free Cash Flow
Free 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...