5hannaford enterprises reported earnings before interest, taxes, depreciation and amortization (ebitda) of $ 500 million in 1999. the firm had depreciation of $ 80 million and reported capital expenditures of $ 120 million. in addition, the firm acquired another firm for $ 150 million during 1999, and reported amortization of $ 40 million for the year. finally, the firm’s total working capital increased from $ 80 million to $ 180 million, but half of this increase was due to an increase in the cash balance; the firm has no short term debt. if the firm has a tax rate of 40%, estimate the free cash flow to the firm.

$28,000,000

Explanation:

EBIT = EBITDA - depreciation - amortization

        =  $500 - $ 80 - $ 40

        = $380 million

Net Income = EBIT - Tax @40%

                    = $380 - $152

                    = $228 million

Cash Flow from operating Activities:

=  Net Income - Increase in NWC (after reducing cash increase) + Back Depreciation + Back Amortization

= $228 - $50 + $ 80 + $ 40

= $298,000,000

Free cash Flow after Investing Activities:

= Cash Flow from operating Activities - Capital expenditure - Investment in another firm

= $298,000,000 - $120,000,000 - $150,000,000

= $28,000,000

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.