Rome Corporation Is Expected Have EBIT of $2

question 18

Multiple Choice

Rome Corporation is expected have EBIT of $2.3M this year. Rome Corporation is in the 30% tax bracket, will report $175,000 in depreciation, will make $175,000 in capital expenditures, and will have no change in net working capital this year. What is Rome's FCFF?

• A) 2,300,000
• B) 1,785,000
• C) 1,960,000
• D) 1,610,000
• E) 1,435,000

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