Question

What is the free cash flow of a firm with revenues of $32 million, operating margin of 42.1%, net margin of 16.4%, tax rate of 15.3%, and reinvestment rate of 16.8%? Round to the nearest dollar.

Answer #1

Operating profit = sales * operating margin

=32000000*42.1%

=13472000

Reinvestment = sales* reinvestment rate

=32000000*16.8%

5376000

Calcultion of free cash flow: (in Million)

Operating profit.............13472000

Less:[email protected]%.............-2061216

_____________________________________

Operating profit after tax......11410784

Less: reinvestment.................-5376000

_____________________________________

Free cash flow ....... .....................6034784

_____________________________________

So free cash flow is 6034784 dollars

What are the free cash flows of a firm with revenues of $600
million, net profit margin of 55%, operating profit margin of 20%,
tax rate of 26%, reinvestment rate of 40%, and dividend payout rate
of 5%?

What are the free cash flows of a firm with revenues of $600
million, net profit margin of 55%, operating profit margin of 30%,
tax rate of 26%, reinvestment rate of 40%, and dividend payout rate
of 5%?

What are the free cash flows of a firm with revenues of $600
million, net profit margin of 55%, operating profit margin of 30%,
tax rate of 26%, reinvestment rate of 40%, and dividend payout rate
of 5%?

What are the free cash flows of a firm with revenues of $600
million, net profit margin of 55%, operating profit margin of 30%,
tax rate of 26%, reinvestment rate of 35%, and dividend payout rate
of 5%?

What are the free cash flows of a firm with revenues of $600
million, net profit margin of 55%, operating profit margin of 30%,
tax rate of 26%, reinvestment rate of 30%, and dividend payout rate
of 5%?
a) $53.3 million
b) $66.6 million
c) $79.9 million
d) $86.6 million
e) $93.2 million

What are the free cash flows of a firm with revenues of $600
million, net profit margin of 55%, operating profit margin of 20%,
tax rate of 26%, reinvestment rate of 40%, and dividend payout rate
of 5%?
a) $53.3 million b) $66.6 million c) $79.9 million d) $86.6
million e) $93.2 million

What are the free cash flows of a firm with revenues of $600
million, net profit margin of 55%, operating profit margin of 30%,
tax rate of 26%, reinvestment rate of 40%, and dividend payout rate
of 5%? a) $53.3 million b) $66.6 million c) $79.9 million d) $86.6
million e) $93.2 million

What are the free cash flows of a firm with revenues of $600
million, net profit margin of 55%, operating profit margin of 30%,
tax rate of 26%, reinvestment rate of 40%, and dividend payout rate
of 5%?
a) $53.3 million
b) $66.6 million
c) $79.9 million
d) $86.6 million
e) $93.2 million

What are the free cash flows of a firm with revenues of $600
million, net profit margin of 55%, operating profit margin of 30%,
tax rate of 26%, reinvestment rate of 40%, and dividend payout rate
of 5%?
a) $53.3 million
b) $66.6 million
c) $79.9 million
d) $86.6 million
e) $93.2 million

What are the free cash flows of a firm with revenues of $600
million, net profit margin of 55%, operating profit margin of 20%,
tax rate of 26%, reinvestment rate of 40%, and dividend payout rate
of 5%?
a) $53.3 million
b) $66.6 million
c) $79.9 million
d) $86.6 million
e) $93.2 million

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