The firm has 120 million in long term debt and preferred


1. This year, Starbuck's has earnings before interest and taxes of 10 million, depreciation expenses of 1 million, capital expenditures of 1.5 million, and has increased its net working capital by 500,000.

If its tax rate is 35%, what is its free cash flow?

2. A firm has an enterprise value of $640 million.

The firm has $120 million in long term debt and preferred stock and has 50 million shares outstanding.

What is the price per share?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The firm has 120 million in long term debt and preferred
Reference No:- TGS02705586

Expected delivery within 24 Hours