A Firm Reports That in a Certain Year It Had

question 29

Multiple Choice

A firm reports that in a certain year it had revenues of $4.5 million,costs of $1.2 million,a capital cost allowance (CCA) deduction of $2.8 million,capital expenditures of $2.3 million,and net working capital decreased by $1.5 million.If the firm's marginal corporate tax rate is 30%,what is the firm's free cash flow for that year?

• A)$5.3 million
• B)-$0.65 million
• C)$1.75 million
• D)$2.15 million
• E)$2.35 million

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Definitions:

Social Context

The environmental and cultural circumstances that influence the understanding and interpretation of communications and behaviors.

Prescribed Roles

Socially and culturally defined expectations and duties assigned to individuals or groups, often based on their status, gender, or age.

Cohabitation Rates

The statistical measure of the number of couples living together without being legally married.

Legal

Pertaining to the law or the governance of affairs as recognized and enforced by judicial decision.