1. Consider a company with revenues of $20 million this year. The company is projected to grow its revenues 10% over the next year. 
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3. What is its projected free cash flow next year, if it is forecasted to have the following characteristics? 
4. 
   
5. Operating margin: 60%.
6. Tax rate: 15%.
7. Reinvestment rate: 45%.
8. Assume that the company has no non-operating income, so that EBIT = Operating income

Answer rating: 100% (QA)

ANSWER i Current year revenues cr 20 milliongrowth rate g 10Ope... View the full answer