A company has the following information: Earnings before interest and taxes .................... $80.00 Interest expense ..................................................... $8.00
Question:
A company has the following information:
Earnings before interest and taxes .................... $80.00
Interest expense ..................................................... $8.00
Tax rate ...................................................................... 25%
Net change in debt ............................................... $12.00
Investment in total capital ..................................... $9.00
What is its free cash flow to equity?
Free Cash FlowFree cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Method 1 FCF EBIT1 T Investment in total net operating capital 801 ...View the full answer
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Related Book For 
Financial Management Theory and Practice
ISBN: 978-1337902601
16th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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