Question regarding the firm free cash flow


Problem:

A firm has operating income of $1,000, depreciation expense of $185 and its investment in operating capital is $400. The firm is 100% equity financed and has a 35% tax rate.

Required:

Question: What is the firm's free cash flow?

  • $785
  • $515
  • $435
  • $250

Note: Provide support for your underlying principle.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Question regarding the firm free cash flow
Reference No:- TGS0888927

Expected delivery within 24 Hours