Madura Inc. wants to increase its free cash flow by $180 million during the coming year, which
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Madura Inc. wants to increase its free cash flow by $180 million during the coming year, which should result in a higher EVA and stock price. The CFO has made these projections for the upcoming year:
· | EBIT is projected to equal $820 million. |
· | Gross capital expenditures are expected to total to $360 million versus depreciation of $120 million, so its net capital expenditures should total $240 million. |
· | The tax rate is 40%. |
· | There will be no changes in cash or marketable securities, nor will there be any changes in notes payable or accruals. |
What increase in net operating working capital (in millions of dollars) would enable the firm to meet its target increase in FCF?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
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