1. Use the following data for a home health firm to answer questions.
Net income after taxes $1,000,000
Depreciation 300,000
Interest 100,000
Capital Expenditures 400,000
Working Capital Expenditures 500,000
Long- Term Debt 1,000,000
Income Taxes 400,000
2. What is the current value of free cash flow?
3. Using a 20 EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), what is the value of the firm's equity?