Chartered Financial Analyst Level 1
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An analyst gathers the following information about a company:
- Interest payments:
$30,000
- Capital expenditures:
$82,000
- Net borrowing:
$18,000
- Income tax rate: 40%
Under U.S. GAAP, free cash flow to equity (FCFE) is most likely:
An analyst gathers the following information about a company:
- Interest payments:
$30,000 - Capital expenditures:
$82,000 - Net borrowing:
$18,000 - Income tax rate: 40% Under U.S. GAAP, free cash flow to equity (FCFE) is most likely:
Exam-Like
A
Less than free cash flow to the firm (FCFF).
33.3%
B
Equal to free cash flow to the firm (FCFF).
33.3%
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