An analyst is planning to make a valuation on a privately held company by using a
FCF Model. In order to determine the free cash flow to all capital suppliers, he
collected the following data (in million):
Operating cash flow 500
Interest paid 30
Investment in working capital 80
Investment in fixed asset 60
Tax rate 30%
The free cash flow the analyst is planning to determine is closest to:
A. 440.
B. 381.
C. 461.
Solution: C
Free cash flow = CFO + interest paid (1 - tax rate) – investment in fixed asset = 500 +
300.7– 60 = 461
不理解答案
