Given the Following Data for a Given Period, Compute the Free

question 33

Multiple Choice

Given the following data for a given period, compute the free cash flow to the firm: Net Income = $5,000
After-tax Interest Expense = $500
Depreciation = $500
Increase in NWC = $1,000
Capital Expenditures = $2,000

• A) $3,000
• B) $3,500
• C) $3,700
• D) $3,900

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Definitions:

Prospecting Method

Techniques or strategies used to identify potential customers or clients for a business, aiming to initiate and establish new business opportunities.

E-mail Marketing

A technique of sending commercial messages to a group of people using electronic mail, aimed at promoting products or services.

Potential Contacts

Individuals or entities that could possibly be converted into clients or customers, identified through research or networking as having an interest or need for a product or service.

Leads

Potential customers who have shown interest in a company's product or service and may eventually result in a sale.