Question: Thomas Plc generated 100 million in EBITDA last year and reported 30 million in depreciation. The company also had 60 million in capital expenditures and

Thomas Plc generated 100 million in EBITDA last year and reported

Thomas Plc generated 100 million in EBITDA last year and reported 30 million in depreciation. The company also had 60 million in capital expenditures and its non-cash working capital increased from 15 to 25 million. The book value of equity is 500 million, it has debt of 300 million and cash of 100 million. If the tax rate is 20%, what is the a. Reinvestment rate (2.5 marks) b. Expected growth in operating income for the company? (2.5 marks)

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