hard · Corporate Credit Analysis
A borrower generates $200M in EBITDA with $40M in depreciation and amortization. The company faces a 25% corporate tax rate and pays $60M in cash interest annually.
If the firm invests $50M in total capex and sees a $10M increase in net working capital, what is the reconciliation difference between Unlevered Free Cash Flow (UFCF) and Free Operating Cash Flow (FOCF)?
- $60M
- $35M
- $15M
- $45M
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