Calculate a Firm's Free Cash Flow If It Has Net

question 116

Multiple Choice

Calculate a firm's free cash flow if it has net operating profit after taxes of $60,000, depreciation expense of $10,000, net fixed asset investment requirement of $40,000, a net current asset requirement of $30,000 and a tax rate of 30%.

• A) $0.
• B) $30,000.
• C) -$30,000.
• D) none of the above.

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Definitions:

Vertebrae

The series of small bones forming the backbone, protecting the spinal cord and supporting the body.

Ligament

A short band of tough, flexible, fibrous connective tissue that connects two bones or cartilages or holds together a joint.

Cranial Suture

A fibrous joint that connects the bones of the skull, allowing for growth during infancy and becoming less distinct in adulthood.

Endosteum

A thin vascular membrane of connective tissue that lines the inner surface of bony tissue that forms the medullary cavity of long bones.