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Free Cash flow to the firm = Earning before int and tax (1-Tax rate) + non-cash expenses – fixed capital investment – working capital investment = 45000 *0.75 + 2380 – 22500 – 6800 = 6830 Depreciation is added because it was subtracted while calculating EBIT. As EBIT is before payment of interest and tax, we need not subtract interest payment (if given) nut we have to adjust for taxes. All types of capital expenditure (fixed capital and working capital) both are to be deducted.
Sonia goes to a clothing store with a certain amount of money. She can buy 90 shirts or 30 trousers with the money she has. However, she decides to save...
A girl spent 15% of her monthly income on clothing. Of the remaining, she spent on travel and food in the ratio of 5:3. If the difference of the income ...
A car's value decreases by 20% every year. If the car was purchased for Rs 3,30,000, what will be the total percentage decrease in its value over a 3-ye...
A person saves 25% of his monthly income. If his monthly is increased by 35% and he still saves the same amount as before then find percentage increase ...
The income of Tina is Rs.20000 and she saves 25% of her income. The savings of Kajal is Rs.1200 more than that of Tina and she spends 50% of her income....
A spent 30% and 20% of his monthly salary on food and rent, respectively. Of the remaining amount, he gave 21% and 14% to his mother and brother, respec...
The price of wheat has increased by 45%. Mohit has decided to spend only 16% more than what he initially did on buying wheat. What is the percentage dec...
The income of Tina is Rs.24000 and she saves 15% of her income. The savings of Kajal is Rs.2000 more than that of Tina and she spends 60% of her income....
The respective ratio of monthly income of A to monthly income of B is 11:12, and A’s saving is (100/17)% more than B’s saving. Find the expenditure ...
The monthly income of Vivek and Sohan together is Rs. 46000. The income of Vivek and Sohan is increased by 20% and 30% respectively. The new income of ...
