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Business, 28.02.2020 02:14 moonk7733

Beckham Broadcasting Company (BBC) has operating income (EBIT) of $2,500,000. The company's depreciation expense is $500,000 and it has no amortization expense. The company is 100% equity financed. The company has a 40% tax rate, and its net investment in operating capital is $1,000,000.

What is BBC's free cash flow?

a. $0
b. $500,000
c. $900,000
d. $1,000,000
e. $1,500,000

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Answers: 2

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Beckham Broadcasting Company (BBC) has operating income (EBIT) of $2,500,000. The company's deprecia...
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