What is the free cash flow to equity holders

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Reference no: EM131995704

The Sahali Corporation has EBIT of $2300000 million. Sahali paid $350,000 in interest and has a tax rate of 33%. During the year Sahali invested 25% of pre-tax earnings in the new equipment and additional 8% into working capital to fund its growth. It financed these investments in part by raising $300,000 (net) of new debt. The depreciation is $250,000. What is the free cash flow to equity holders of Sahali Corp?

Reference no: EM131995704

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