Rome Corporation is expected have EBIT of $2.3M this year.Rome Corporation is in the 30% tax bracket,will report $175,000 in depreciation,will make $175,000 in capital expenditures,and have no change in net working capital this year.What is Rome's FCFF?
A)2,300,000
B)1,785,000
C)1,960,000
D)1,610,000
E)1,435,000

Question

Quizplus · Accepted Answer

The Answer of Rome Corporation is expected have EBIT of $2.3M this year.Rome Corporation is in the 30% tax bracket,will report $175,000 in depreciation,will make $175,000 in capital expenditures,and have no change in net working capital this year.What is Rome's FCFF?
A)2,300,000
B)1,785,000
C)1,960,000
D)1,610,000
E)1,435,000

Rome Corporation Is Expected Have EBIT of $2