This year, FCF Inc. has earnings before interest and taxes of $9,160,000, depreciation expenses of...
90.2K
Verified Solution
Link Copied!
Question
Finance
This year, FCF Inc. has earnings before interest and taxes of $9,160,000, depreciation expenses of $1,400,000, capital expenditures of $1,200,000, and has increased its net working capital by $500,000. If its tax rate is 30%, what is its free cash flow? The company's free cash flow is $ (Round to two decimal places.) Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $1.9 million. Its depreciation and capital expenditures will both be $305,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $45,000 over the next year. Its tax rate is 32%. If its WACC is 10% and its FCFs are expected to increase at 3% per year in perpetuity, what is its enterprise value? The company's enterprise value is (Round to the nearest dollar.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!