Answer: Borrowing from a bank

## Explanation **FCFE Formula:** FCFE = Net Income + Depreciation - FCInv - WCInv + Net Borrowing **Impact Analysis:** - **Option A (Issuing new shares):** This is a financing activity that doesn't directly affect FCFE calculation. It affects the equity base but not the FCFE amount itself. - **Option B (Borrowing from a bank):** **This directly impacts FCFE** because net borrowing is a component of the FCFE formula. Increased borrowing increases FCFE, while debt repayment decreases FCFE. - **Option C (Paying common share dividends):** Dividend payments are a use of FCFE, not a determinant of FCFE. They represent the distribution of FCFE rather than affecting its calculation. **Therefore, borrowing from a bank (net borrowing) is the action that most directly impacts future FCFE calculations.**

Author: LeetQuiz Editorial Team