Free Cash Flow You Are Considering an Investment in Cruise

question 7

Multiple Choice

Free Cash Flow You are considering an investment in Cruise, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Cruise earned an EBIT of $202 million, paid taxes of $51 million, and its depreciation expense was $75 million. Cruise's gross fixed assets increased by $70 million from 2007 to 2008. The firm's current assets decreased by $10 million and spontaneous current liabilities increased by $6 million. What is Cruise's operating cash flow, investment in operating capital, and free cash flow for 2008, respectively, in millions?

• A) $202, $70, $130
• B) $226, $70, $156
• C) $226, $54, $172
• D) $226, $74, $152

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Definitions:

Situational Support

Assistance provided to individuals based on specific circumstances or crises they are facing, often tailored to address immediate needs or challenges.

Murder

The unlawful premeditated killing of one human being by another.

Jury Verdict

The decision reached by a jury in a trial, determining the outcome of the case presented before them.

Self-Harm

The intentional injury to one's own body, typically as a way to cope with emotional pain or distress.