A firm's Cash Flow to the Firm is $30 million, depreciation is $4 million, its investments in fixed capital totals $12 million, its before-tax interest totals $5 million and its investment in working capital totals $3 million. During the year the firm borrowed $6 million. The tax rate is 30%. What is its Free Cash Flow to Equity?

Answer rating: 100% (QA)

To calculate the Free Cash Flow to Equity FCFE we need to start with the Cash Flow to the Firm CFF a... View the full answer