Your question is Unlevered Free Cash Flow. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
Calculate Unlevered Free Cash Flow (UFCF) given specific numbers. Asked in the First Round stage. Use the following figures:
| Item | Amount |
|---|---|
| EBIT | $120 million |
| Tax rate | 25% |
| Depreciation and amortization | $20 million |
| Capital expenditures | $30 million |
| Increase in net working capital | $10 million |
Assume USD millions, standard corporate finance definitions, and no other adjustments.
