Selected information regarding Beta Ltd is given below: Cash flow from operations = $1,822,970 Depreciation = 177,370
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Question:
Selected information regarding Beta Ltd is given below:
- Cash flow from operations = $1,822,970
- Depreciation = 177,370
- Interest expense = $148,375
- Fixed capital investment = $451,620
- Working capital investment = $237,280
- Net borrowing = $328,150
Given a tax rate of 40%, free cash flow to the firm is closest to:
Select one:
a. $1,637,745
b. $1,371,375
c. $1,460,375
Question 4
Question text
Selected information regarding Sentino Investments is given below:
- Earnings before interest and tax = $548,950
- Interest expense = $115,250
- Capital expenditures = $1,150,285
- Proceeds from sale of long-term assets = $790,390
- Depreciation expense = $280,355
- Current assets (excluding cash) = $595,650
- Current liabilities (excluding short-term debt) = $291,250
Given a tax rate of 40%, free cash flow to the firm is closest to:
Select one:
a. $165,010
b. -$54,570
c. -$222,963
Question 5
Question text
Selected information regarding Tempra Capital is given below:
- Earnings before interest and tax = $950,125
- Interest expense = $215,250
- Fixed capital expenditures = $775,280
- Depreciation expense = $290,155
- Working capital investment = $321,255
- Net borrowing = $540,290
Given a tax rate of 40%, free cash flow available to holders of common equity is closest to:
Select one:
a. $554,885
b. $174,835
c. $742
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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