A firm reported the following financial statement items:
€millions | |
Net income | 2,100 |
Non-cash charges | 400 |
Interest expense | 300 |
Capital expenditures | 210 |
Working capital expenditures | 0 |
Net borrowing | 1,600 |
ax rate | 40% |
The free cash flow to the firm (FCFF) is closest to:
FCFF = NI + NCC + lnt(1 - t)- FClnv-WClnv