Question

Use the following data for a home health firm to answer questions. (Show work please and thank

you)

Net income after taxes $1,000,000

Depreciation 3,00,000

Interest 1,00,000

Capital Expenditures 400,000

Working capital expenditures 500,000

Long-term debt 1,000,000

Income taxes 400,000

1.What is the current value of free cash flow?

2.Using a 20 EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), what is the value of the firm’s equity? 

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