Reference no: EM132551220
The following information is available from a Company's financial statements, with dollar amounts in millions:
Item Amount (in millions)
Cash flow from operations $4,610
Net income $3,325
EBIT $5,597
Depreciation and amortization $1,261
Other non-cash adjustments $160
Change in working capital $136
Capital expenditures $3,982
Net debt financing $456
Interest expense $190
Tax rate 32%
Assume that all capital expenditures are necessary for maintaining current growth.
Required:
(a) Calculate free cash flow to equity.
(b) Calculate free cash flow to the firm.
(c) How much free cash flow is available for company's stakeholders in general & stockholders in particular?
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