Question: When computing the Free Cash Flow to the Firm ( FCF ) , taxes are computed as EBIT multiplied by tax rate: Question 8 Answer

When computing the Free Cash Flow to the Firm (FCF), taxes are computed as EBIT multiplied by tax rate:
Question 8Answer
a.
to avoid the impact from financing decisions
b.
to avoid the impact from financing and companys tax policy decisions
c.
to include the impact from financing and investment decisions

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