Compute the free cash flow to the firm


Problem

In the current year a company had net capital expenditures of $60,000, issued net new debt of $25,000, and paid interest of $62,000, In addition, the company reported cash flow from financing activities of $36,000, cash flow from investing activities of ($150,000), and cash flow from operating activities of $165,000. The marginal tax rate is 21%. Compute the free cash flow to the firm.

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Risk Management: Compute the free cash flow to the firm
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