Question: Consider the following data (be careful... there may be some unnecessary information). EBIT = 200 Interest expense= 10 Tax rate = 40% Depreciation = 20

Consider the following data (be careful... there may be some unnecessary information).

  • EBIT = 200
  • Interest expense= 10
  • Tax rate = 40%
  • Depreciation = 20
  • Net working capital = 30
  • Increase in net working capital = 10
  • Beginning of period Net PP&E= 50
  • Capex= 30

What is the free cash flow of the firm that year?

80

74

60

100

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