Calculate a firm’s free cash flow if it has net operating profit after taxes of $100,000, net fixed asset investment requirement of $40,000, a net current asset requirement of $30,000 and a tax rate of 30 percent.
A. $0.
B. $30,000.
C. –$30,000.
D. none of the above.
Answer:A
Calculate a firm’s free cash flow if it has net operating profit after taxes of $100,000, net fixed asset investment requirement of $40,000, a net current asset requirement of $30,000 and a tax rate of 30 percent.
A. $0. B. $30,000. C. –$30,000. D. none of the above.