Vasudevan Inc

question 48

Multiple Choice

Vasudevan Inc.recently reported operating income of $2.3 million,depreciation of $1.20 million,and had a tax rate of 25%.The firm's expenditures on fixed assets and net operating working capital totaled $0.60 million.How much was its free cash flow,in millions?

• A) $2.22
• B) $2.06
• C) $2.325
• D) $2.44
• E) $1.96

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Definitions:

Predict

To declare or indicate in advance; to foresee or calculate the future occurrence of something.

Underestimated

describes judging something or someone to be lower in value, strength, or importance than it actually is.

Cognitive Abilities

Mental capabilities that include thinking, reasoning, problem-solving, and information processing.

Synapses

The junctions through which neurons signal to each other or to non-neuronal cells such as those in muscles or glands.