Lauryn’s doll co. had ebit last year of $56 million, which is net of a depreciation expense of $5.6 million. in addition, lauryn’s made $5.3 million in capital expenditures and increased net working capital by $2.7 million. assume that lauryn’s has a reported equity beta of 1.7, a debt-to-equity ratio of 0.4, and a tax rate of 30 percent. what is lauryn’s fcf for the year?

$36.8 million

Explanation:

The computation of the free cash flow is shown below:

= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure.

= $56 million × ( 1 - 0.30) + $5.6 million - $2.7 million - $5.3 million

= $39.20 million + $5.6 million - $2.7 million - $5.3 million

= $36.8 million

All other information which is given is not relevant. Hence, ignored it

answerjointly by the fed and by the behavior of individuals who hold money and of banks in which money is held;