medium · Principles of Finance financial-statements-markets-wc

A firm has EBIT of $600M, a tax rate of 25%, D&A of 140M, CapEx of 200M, and a working capital increase of 50M. It also has interest expense of 40M.

What is its Free Cash Flow to the Firm (FCFF)?

  1. $340M
  2. $450M
  3. $310M
  4. $480M

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