A company has revenues of $170 000,expenses of $45 000 and tax of $37 500.If the company also has a working capital level of $25 000 and the corporate tax rate is 30%,estimate the level of free cash flows for the firm.

Question

Quizplus · Accepted Answer

Using the FCF model,we estimate the level of FCF for the firm as follows: revenues - (expenses + tax)+ working capital: 170 000 - (45 000 + 37 500)+ 25 000 = $112 500.

A Company Has Revenues of $170 000,expenses of $45 000 $55000 \$ 55 \quad 000 $55000

A Company Has Revenues of $170 000,expenses of $45 000 $\$ 55 \quad 000$