Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $14,200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,130 million, and net operating working capital (NOWC) is expected to increase by $35 million. How much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year?

The free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year is $12,035 million

Explanation:

According to the given data we have the following:

net operating profit after taxes=$14,200 million

net capital expenditures= $2,130 million

net operating working capital = $35 million.

Therefore, free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year would be calculated as follows:

FCF= net operating profit after taxes-net capital expenditures- net operating working capital

FCF=$14,200 million-$2,130 million- $35 million

FCD=$12,035 million

answer; ///i believe the correct two answer are (1) paid in capital; and (2) earned   capital; good luck