Question: Question content area top Part 1 Forecast KMSKMS ' s free cash flow, assuming KMSKMS ' s market share will increase by 0 . 2

Question content area top Part 1 Forecast KMSKMS's free cash flow, assuming KMSKMS's market share will increase by 0.24%0.24% per year; investment, financing, and depreciation will be adjusted accordingly; and working capital will be as given in the table: Year 202220232024202520262027 Free Cash Flow ($000s) Net Income 8,0039,2319,1449,51110,99912,720 After-Tax Interest Expense 2292292291,2441,2441,244 Depreciation 5,4765,4937,4137,4787,5017,531 Increases in Net Working Capital 02,9963,1303,3703,7234,091 Capital Expenditures 5,0745,07428,0728,0178,0178,017. The Tax Cuts and Jobs Act of 2017 temporarily allowed100% bonus depreciation(effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems. Question content area bottom Part 1 The free cash flow in 20222022 will be $enter your response here thousand. (Round to the nearest integer.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!