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Question
During the coming year, Gold & Gold wants to increase its free cash flow by $180 million, which should result in a higher stock price. The CFO has made these projections for the upcoming year:EBIT is projected to equal $850 million.
Gross capital expenditures are expected to total to $360 million versus depreciation of $120 million, so its net capital expenditures should total $240 million.
The tax rate is 40%.
There will be no changes in cash or marketable securities, nor will there be any changes in notes payable or accruals.
What increase in net working capital (in millions of dollars) would enable the firm to meet its target increase in FCF?
a. $72
b. $90
c. $108
d. $130
e. $156
Answer
This answer is hidden. It contains 1 characters.
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