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Title: Bubba Ho-Tep Company reported net income of $300 million for the most recent fiscal year. The firm ... Post by: johnpaech on Nov 19, 2017 Bubba Ho-Tep Company reported net income of $300 million for the most recent fiscal year. The firm had depreciation expenses of $125 million and capital expenditures of $150 million. Although they had no interest expense, the firm did have an increase in net working capital of $20 million. What is Bubba Ho-Tep's free cash flow?
A) $170 million B) $255 million C) $150 million D) $5 million Title: Re: Bubba Ho-Tep Company reported net income of $300 million for the most recent fiscal year. The ... Post by: deusmaroto on Nov 19, 2017 B
Explanation: B) FCF = NI + Dep - Capital Ex - chg NWC = 300 + 125 - 150 - 20 = 255 |