Hartzell Inc

question 109

Multiple Choice

Hartzell Inc. had the following data for 2011, in millions: Net income = $600; after-tax operating income [EBIT(1 - T) ] = $700; and Total assets = $2,000. Information for 2012 is as follows: Net income = $825; after-tax operating income [EBIT(1 - T) ] = $925; and Total assets = $2,500. How much free cash flow did the firm generate during 2012?

• A) $383
• B) $425
• C) $468
• D) $514
• E) $566

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Definitions:

Minimized

The act of reducing something to the smallest possible amount or degree.

Coordinating

The process of organizing people or groups so that they work together efficiently and effectively towards a common goal.

Mediating

A process by which a neutral third party helps resolve a dispute or conflict between two or more parties.

Synthesizing

The process of combining different ideas, findings, or materials into a coherent whole.