Question: please explain how u. got free cash flow thanks You are an industry analyst for the energy sector. You are analyzing financial reports from two
please explain how u. got free cash flow thanks
You are an industry analyst for the energy sector. You are analyzing financial reports from two companies: Black Gold Corp. and New Energy Inc. Corporate tax for both firms is 35%. Your associate analyst has calculated and compiled in the following table, a list of important figures you need for the analysis: Black Gold Corp. New Energy Inc. $ 102,000 EBIT $ 278,800 Depreciation $ 92,004 $ 33,660 Total operating capital $ 1,224,000 $ 636,480 Net investment in operating capital $ 612,000 $ 265,200 WACC 11.85% 11.88% What is the free cash flow and ROIC for New Energy Inc.? $181,220 and 14.81% $66,300 and 10.42% $-198,900 and 10.42% $ -430,780 and 14.81%
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