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Calculate free cash flow to the firm

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Reference no: EM132551245

The following information is available from a Company's financial statements, with dollar amounts in millions:

Item Amount (in millions)

Cash flow from operations $4,610

Net income $3,325

EBIT $5,597

Depreciation and amortization $1,261

Other non-cash adjustments $160

Change in working capital $136

Capital expenditures $3,982

Net debt financing $456

Interest expense $190

Tax rate 32%

Assume that all capital expenditures are necessary for maintaining current growth.

Required:

(a) Calculate free cash flow to equity.

(b) Calculate free cash flow to the firm.

(c) How much free cash flow is available for company's stakeholders in general & stockholders in particular?

Reference no: EM132551245

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