Woc inc. wants to increase its free cash flow by PIBO milion during the coming year, which shouldresult in a higher EVA and stock price. The CO has made these projections for the upcoming year:• CBIT Is projected to equal PRSO millon* Gross capital expenditures are enpected to total to P60 milien versus depreciation of P120millon, so its net capital expenditures should total P240 million.• The tan rate is 0N.• There will be no changes in cash or marketable securitien, nor willthere be any changes in notespayable or accrualswhat increase in net working capital in milions) would enable the firm ta meet its target increase inO P 72O P130O P156O P108O P 90

The difference between a company's current assets and current liabilities, such as cash, accounts…

Wec ine, wants to increase ts free cash low by PIB0 milion during the coming vear, which should resut in a higher EVA and stock price. The CHO Na made these p projections for the upceming year • caIT projected to equal PSOlon • Gross capital enpenditures are enpected to tutal to P0 milen versus depreciation of P120 millon, so its net capital ependitures should total P240 million. • The ta rate is 4 • There will be ne dhanges in cash or marketable securitien, ner wil there be any changes in notes payable or rals What increase in net working capital in miliens) woud enable the firm to meet target inereane in O P 72 O P130 O P156

Wec ine, wants to increase ts free cash low by PIB0 milion during the coming vear, which should resut in a higher EVA and stock price. The CHO Na made these p projections for the upceming year • caIT projected to equal PSOlon • Gross capital enpenditures are enpected to tutal to P0 milen versus depreciation of P120 millon, so its net capital ependitures should total P240 million. • The ta rate is 4 • There will be ne dhanges in cash or marketable securitien, ner wil there be any changes in notes payable or rals What increase in net working capital in miliens) woud enable the firm to meet target inereane in O P 72 O P130 O P156

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter21: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 9P

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