Simmy Clementi Ltd has the following reformulated SFP in $ millions as at: Operating assets Financial...

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Simmy Clementi Ltd has the following reformulated SFP in $ millions as at: Operating assets Financial assets Financial obligations Operating liabilities 31 Dec 2024 2590 1010 3600 Required: a) Compute the FCF for the FY 31 Dec 2024. b) Show how the FCF is deployed. 710 60 2830 3600 31 Dec 2023 2350 450 2800 c) Explain what conclusions you may draw from b) above. (In not more than 100 words) Tax reported for the financial year 31 Dec 2024 is $20m and NFE before tax is $5m and the statutory tax rate is 20%. Operating income before tax for the year is $315m. 550 80 2170 2800 (40 marks) (50 marks) (10 marks) (100 marks) Simmy Clementi Ltd has the following reformulated SFP in $ millions as at: Operating assets Financial assets Financial obligations Operating liabilities 31 Dec 2024 2590 1010 3600 Required: a) Compute the FCF for the FY 31 Dec 2024. b) Show how the FCF is deployed. 710 60 2830 3600 31 Dec 2023 2350 450 2800 c) Explain what conclusions you may draw from b) above. (In not more than 100 words) Tax reported for the financial year 31 Dec 2024 is $20m and NFE before tax is $5m and the statutory tax rate is 20%. Operating income before tax for the year is $315m. 550 80 2170 2800 (40 marks) (50 marks) (10 marks) (100 marks)

Answer rating: 100% (QA)

a To compute the Free Cash Flow FCF for the fiscal year ending on December 31 2024 we need to calculate the following FCF Operating income before tax ... View the full answer