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Beckham Broadcasting Company [BBC] has operating income [EBIT] of $2,500,000. The company’s depreciation expense is USD 500,000 and it has no amortization expense.  The company is 100 percent equity financed.  The company has a 40 percent tax rate, and its net investment in operating capital is $1,000,000.9 determine BBC’s free cash flow?

[A]    $0

[B]   $1,000,000

[C]    $1,500,000

[D]   $500,000

[E]   $900,000

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  • Reference No.:- M916150

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