Calculate this companys operating cash flow calculate this


Suppose you're looking at a firm with $200m in EBIT, interest expenses of i average tax rate of 30%, and depreciation of $80m. an They are expected to spend $100m on new property, plant, and equipment this year, and working capital is expected to be $85m (S15m higher than the year)

a) Calculate this company's operating cash Flow.

b) Calculate this company's Free Cash Flow (also called "Cash Flow to the Firm").

c) If this company does not expect to issue or retire any debt this year, then how much ofits free cash flow will be used to pay bondholders, and how much will be left for shareholders?

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Financial Management: Calculate this companys operating cash flow calculate this
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