You have gathered this information on a firm: $512,000 sales, $11,200 cash dividends, $306,000 cost of goods sold, $22,400 administrative expense, $22,400 depreciation expense, $44,800 interest expense, $11,200 purchase of productive equipment, no changes in working capital, and a tax rate of 21% . What is the free cash flow? $91,956 $141,156 $147,956 $157,956

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You have gathered this information on a firm: $512,000 sales, $11,200 cash
dividends, $306,000 cost of goods sold, $22,400 administrative expense, $22,400
depreciation expense, $44,800 interest expense, $11,200 purchase of productive
equipment, no changes in working capital, and a tax rate of 21%. What is the free
cash flow?
$91,956
$141,156
$147,956
$157,956
Transcribed Image Text:You have gathered this information on a firm: $512,000 sales, $11,200 cash dividends, $306,000 cost of goods sold, $22,400 administrative expense, $22,400 depreciation expense, $44,800 interest expense, $11,200 purchase of productive equipment, no changes in working capital, and a tax rate of 21%. What is the free cash flow? $91,956 $141,156 $147,956 $157,956
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