Using the information from the table below, please calculate the Free Cash to Equity and Free Cash Flow to the film.

Categorizing Cash Flows Three ways to categorize cash flows - 1) Draw a distinction between the equity cash flows and the cash flows to the firm FCFE = NI - (CapEx - Dep) - Non-Cash WC + (New Debt - Debt Repmts) FCFF = Op Income (1 - Tax Rate) - (CapEx - Dep) - Non-Cash WC - 2) Distinguish between nominal & real CFs - Nominal: incorporate expected inflation and currency differences Real: do not have an expected inflation component 3) Differentiate between pretax and after-tax cash flows 1 Remember that all measures of cash flows start Potential Dividends In a realistic sense, Free Cash Flow to Equity (FCFE) is a proxy for potential dividends (or potential stock buybacks) FCFE = NI - (CapEx - Dep) - ( NCWC) + (New Debt - Debt Repayment) The calculation is simplified even further if we assume the net CapEx and NCWC changes are financed using a fixed mix of debt and equity with proportion- of debt-financing indicated by FCFE = NI (CapEx Dep)(1 - ) - ( NCWC)(1 - ) FCFE can also be estimated from the statement of cash flows, starting with cash flows from operations and selectively subtracting CapEx and debt cash 2 flows