Question
ABC Ltd has its Earning before Interest and Tax as
45000. The tax rate applicable for the year is 25%. It has made a capital expenditure of Rs 22500 and a working capital expenditure of Rs 6800. Depreciation expenses for the year are 2380. What is Free cash flow to the firm?Solution
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.
Length and breadth of a rectangle are in the ratio 7:9. If the perimeter of the rectangle is 46 cm more than the breadth of the rectangle, then find th...
John had to multiply 'a' by 'b'. He however multiplied 'a' by 22.5 and obtained 423 as the product. Selina also had to multiply 'a' by 'b'. She however ...
The cost of fencing a rectangular field at the rate of Rs. 5/metre is Rs. 330. If the length of the field is 11 metres more than its breadth, then find ...
Outer diameter of 20 cm long pipe is 25 cm. If the thickness of the metal in the pipe is 1 cm. Find the total surface area of the pipe?
A right circular cone has a slant height of 30 cm and its curved surface area is 1,320 cm². A cylindrical vessel has radius 25% more than the cone’s ...
In the given figure, a circle is inscribed in Δ PQR, such that it touches the sides PQ, QR and RP at points D, E, F, respectively. If the lengths of th...
Nine cubes with each side measuring 3 cm are aligned in a straight row to build a cuboid. What is the total surface area of the resulting cuboid?
The sum of the total surface areas of two cubes is 1392 cm2. If the product of the length of their edges is 98 cm2, then find the ...
Length and breadth of a rectangular room are in the ratio 4 ∶ 5. The perimeter of the room is 180 m. Cost of flooring is Rs. 75 per square metre. Find...
A circular garden has an inner radius of 21 metres. A path of width 14 metres surrounds the garden. Find the cost of paving the path at the rate of Rs....
