Question: You are preparing a discounted free cash flow analysis for PayCo Inc. For year 1 of the projection period PayCo Inc. expects EBITDA of $420,000,

You are preparing a discounted free cash flow analysis for PayCo Inc. For year 1 of the projection period PayCo Inc. expects EBITDA of $420,000, depreciation and amortization of $20,000, outstanding debt of $150,000, capital expenditures of $75,000, an increase in working capital of $20,000, 115,000 shares outstanding, cash of $15,000 and a tax rate of 25%.

What would be the free cash flow for PayCo Inc. in Year 1?

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!

In 20X0, Marquette County opened a landfill that was expected to accept waste for four years. The following table indicates the estimates county officials made at the end of each of the four years:...

You are preparing a discounted free cash flow analysis for PayCo Inc. For year 1 of the projection period PayCo Inc, expects EBITDA of $420,000, depreciation and amortization of $20,000, outstanding...

Question 1 3.34 pts You are in the financial planning and analysis department evaluating a new capital project. The project is considered to have a high level of risk. The company's weighted cost of...

Question 3 3.34 pts Pinnacle Corp. has 5 million outstanding shares of common stock which has a beta of 1.05. The current market price is $20 per share and the book value per share is $12. It has a...

You are preparing a discounted free cash flow analysis for XYZ Inc. For year 1 of the projection period XYZ Inc. expects EBITDA of $600,000, depreciation and amortization of $50,000, outstanding debt...

7.You are preparing a discounted free cash flow analysis for BMY Inc. For year 1 of the projection period BMY expects EBITDA of $700,000, depreciation and amortization of $100,000, capital...

You are preparing a discounted free cash flow analysis for BMY Inc. For year 1 of the projection period BMY expects EBITDA of $700,000, depreciation and amortization of $100,000, capital expenditures...

Question 27 3.34 pts You are preparing a discounted free cash flow analysis for Lock Inc. For year 1 of the projection period Lock Inc. expects EBITDA of $570,000, depreciation and amortization of...

You are preparing a discounted free cash flow analysis for Lock Inc. For year 1 of the projection period Lock Inc. expects EBITDA of $570,000, depreciation and amortization of $35,000, outstanding...

1. Identify and describe 3 reasons that companies originally began outsourcing their services? 2. As a follow-up to question 1, do you think that companies have changed their views on the types of...

You are contemplating the purchase of a one-half interest in a corporate airplane to facilitate the expansion of your business into two new geographic area. The acquisition would eliminate about...

in late July, dawgs & More ( Dawgs ) applied to Bank One for a loan against its lawn dog manufacturing equipment. Without committing to make a loan, on August 1 Bank One filed a financing statement...

3. a) Prove that if n is even, then n*n+n is even. b) Prove that if n*n is even then n is even.