Question: Using information in the table below estimate the Free cash flow to firm. The firms marginal tax rate is 40%. Revenues 600 -Operating expenses 500

Using information in the table below estimate the Free cash flow to firm. The firms marginal tax rate is 40%.

Revenues

600

-Operating expenses

500

-Depreciation

15

=EBIT

85

- Interest Expense

10

-Taxes

30

= Net income

45

Change in NWC working capital

10

Principal repayment

15

Capital expenditures

20

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