Abcs ebit is 5 million the depreciation expense is 05


ABC's EBIT is $5 million. The depreciation expense is $0.5 million and interest expense is $0.5 million. The corporate tax rate is 30%. The company has 8 million in operating current assets and $6 million operating current liabilities. It has $5 million in net plant and equipment. The after-tax cost of capital (WACC) is 6%. Assume that the only non-cash item is depreciation. The total net operating capital last year was $4 million.

What was the company's free cash flow for the year?

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English: Abcs ebit is 5 million the depreciation expense is 05
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