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Author Question: Net Income60,000+ Depreciation+6,000- Capital Expenditures-7,000- Increases in Working Capital ... (Read 63 times)

Cooldude101

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on: Jul 9, 2019
Net Income60,000
+ Depreciation+6,000
- Capital Expenditures-7,000
- Increases in Working Capital -2,000
= Free Cash Flow 57,000

Vega Music's projected net income and free cash flows are given above in thousands of dollars. Vega expects that their net income and increases in net working capital to increase by 5% per year. If Vega were able to reduce its annual increase in working capital by 10% without affecting any other part of the business adversely, what would be the effect of this reduction on Vega's value, given a cost of capital of 13%?
◦ an increase of $2,500,000
◦ an increase of $1,370,000
◦ an increase of $500,000
◦ an increase of $3,800,000
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by Cooldude101 on Jul 9, 2019

xoxo123

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Cooldude101

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Reply #2 on: Jul 9, 2019
Excellent


xoxo123

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Reply #3 on: Jul 9, 2019
Great! Please up vote :D


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