A Firm Has Sales of $10,000, EBIT of $3,000, Depreciation

question 47

Multiple Choice

A firm has sales of $10,000, EBIT of $3,000, depreciation of $400, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and there were no increases in net operating working capital, what is the firm's free cash flow?

• A) $7400
• B) $600
• C) $500
• D) -$1,220

---

Definitions:

Persuasion Tactics

Strategies or methods employed to influence others' attitudes, beliefs, or actions towards a particular viewpoint or decision.

Stereotypes

Oversimplified and generalized beliefs about a group of people that often ignore individual differences.

Cognitive Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Cognitive Dissonance

A psychological concept involving the discomfort experienced when holding conflicting beliefs or attitudes, leading to an alteration in one or more of these beliefs to reduce the discomfort.