Computing the free cash flow

Assignment Help Business Management
Reference no: EM132652104

A firm has earnings before interest and taxes (EBIT) of $55 million, depreciation of $9 million, and a 40% tax rate. Its net fixed assets increase by $13 million. It spends $16 million to increase its current assets. It expects its accounts payable to increase by $3 million, its accruals to increase by $5 million, and its notes payable to increase by $4 million. The firm's current liabilities consist of only accounts payable, accruals, and notes payable. What is its free cash flow (FCF)?

Reference no: EM132652104

Questions Cloud

Describe the financial liabilities for the estee lauder : Describe the financial liabilities for the Estee Lauder Companies Inc. type, rate and term? What is the calculation or ratio used?
Key components of human resource management : Discuss the key components of human resource management. What are some tools they can use to select the best-talent?
Invest the excess cash in long-term fixed assets : Is it true that after subtracting the minimum cash balance, if the cash budget of a firm shows the excess cash balance for the current month
How your proposal directly and indirectly impact the aspects : After discussion with your preceptor, name one financial aspect, one quality aspect, and one clinical aspect that need to be taken into account for developing.
Computing the free cash flow : The firm's current liabilities consist of only accounts payable, accruals, and notes payable. What is its free cash flow (FCF)?
Which would be considered to be a liquid investment : Which would be considered to be a liquid investment? Buying a large number of shares in a small, thinly traded public company
Describe two errors in your exam performance : Based on your performance and the expert feedback in your PHYSICAL EXAM collection, describe two errors in your exam performance or documentation.
Explain three parties that may be affected by inflation : Having surplus funds means that a company has made a profit or perhaps that is has completed a project under budget. Discuss FIVE (5) factors
Determine the esl and the respective aw value : An injection molding system has a first cost of $210,000. Using a MARR of 10% per year, determine the ESL and the respective AW value of the system.

Reviews

Write a Review

Business Management Questions & Answers

  What other countries might be potential markets for the nano

In 2009, Tata Motors introduced the Nano, a fuel-efficient, two-cylinder-engine automobile that has the lowest CO2 emission of all cars in India.

  Discuss strategies to obtain feedback

Discuss strategies to obtain feedback from a customer and clients when working in sales.

  Tata simulation strategy model

She is also using this assignment as part of her decision as to who to promote to some important positions which have opened up. Give specific details of the results you obtained and alternatives you looked at while playing the simulation. Discuss..

  Letter of recommendation

If someone were to write a letter of recommendation for you to share in a job interview, what content do you think it would display? (Provide a detailed, sample draft).

  Adapting organizational development interventions

How would you describe how OD (organizational development practitioner) interventions need to be adapted to fit different cultural contexts.

  Introduction to film qualifies as a course

Introduction to Film qualifies as a course that partially fulfills a student's LACC requirement. By the end of the course, students will: 1) be familiar with film as an art form that reflects the cultural context in which it was created, primaril..

  Review the stakeholder analysis you completed

Review the stakeholder analysis you completed in Topic 3 (see attached) to determine the key stakeholders that will make up the audience for this presentation.

  Corporate responsibility and marketing strategies

Assignment 1: Corporate Responsibility and Marketing Strategies for Apple Corporation, and the strategies it  currently employs to market its products.

  Why would this be an important part of such a contract

Also seen with these contracts was a pre-determined mandatory retirement date; why would this be an important part of such a contract?

  Fact receive smallville acceptance

Despite these defects, ACME did in fact receive Smallville's acceptance of the ACME offer on May 17th. Please respond to the following questions in your posts and respond to other students' original posts.

  Provide an example of a business or specific person

Provide an example of a business or specific person(s) that effectively use social media. What tools does the business or person use?

  Construct a plan that ensures a virtual team

Your new team for Health Care, Inc may consist of team members from different locations. Construct a plan that ensures a virtual team's performance

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd