help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / A company has the following information: Earnings before interest and taxes Interest expense $ 11

A company has the following information: Earnings before interest and taxes Interest expense $ 11

Finance

A company has the following information: Earnings before interest and taxes Interest expense $ 11.00 Tax rate Net change in debt Investment in total capital What is its free cash flow to equity? Do not round Intermediate calculations, Round your answer to the nearest cent. 40% $ 12.00 $ 8.00

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Calculation of FCFE:

Earning before tax= Earning before interest and tax- interest

Earning before tax=(80-11)= 69

Earning after tax= Earning before tax×(1-tax)= 69×(1-0.40)= (69×0.6)= 41.4

FCFE= Earning after tax+net change in debt-investment in total capital

FCFE= 41.4+12-8= 45.4

FCFE= $45.4

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)