Determine bbcrsquos free cash, Ask an Expert

Finance

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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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M916150

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