What is the firms free cash flow of that year

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Reference no: EM13729291

1. A firm has $ 3 million market value and it sells preferred stock with a par value of $100. If the coupon rate on the preferred stock is 9% and the preferred stock trades at $85, what is the cost of preferred stock financing?

A.11.65%

B. 10.59%

C. 10.06%

D. 11.12%

2. A firm reports that in a certain year it has a net income of $4.3 million, depreciation expenses of $2.9 million, capital expenditures of $2.4 million, and Net Working Capital decreased by $1.3 million. What is the firm's free cash flow of that year?

A. $3.5 million

B. $5.1 million

C. $10.9 million

D. $ 6.1 million

Reference no: EM13729291

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