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

question 45

Multiple Choice

Given the following data for a given period,compute the free cash flow to the firm: Net Income = $5000
After-tax Interest Expense = $500
Depreciation = $500
Increase in NWC = $1000
Capital Expenditures = $2000

• A)$3000
• B)$3500
• C)$3700
• D)$3900
• E)$4200

---

Definitions:

Standard Deviation

An indicator that quantifies the spread or variability among a collection of numbers, showing the extent to which these numbers differ from their average.

Mean

The mathematical mean of a collection of numbers, obtained by summing them up and then dividing by the total count of the numbers.

Mean Salary

The average amount of income earned by employees in a particular job, sector, or region, calculated by summing all salaries and dividing by the number of employees.

Skewed

A term describing asymmetry in the probability distribution of a real-valued random variable, indicating a deviation from the normal distribution.