It needs to spend 10 million on new fixed assets and 16


A company has EBIT of $35 million, depreciation and amortization of $5 million, and a 40% tax rate. It needs to spend $10 million on new fixed assets and $16 million to increase its current assets, and it expected its accounts payable to increase by $2 million and its accruals to increase by $4 million. What is its free cash flow (FCF)?

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Finance Basics: It needs to spend 10 million on new fixed assets and 16
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