If the free cash flow to the firm (FCFF) is P20M, the interest expense is P2M, the tax rate is 40%, the company had to inject 3M in capital expenditures but there are no changes in working capital, what is the free cash flow to equity (FCFE) for that year? a. P21.8M b. P18.8M c. P24.2M d. P25.0M e. None of the above.

If the free cash flow to the firm (FCFF) is P20M, the interest expense is P2M, the tax rate is 40%, the company had to inject 3M in capital expenditures but there are no changes in working capital, what is the free cash flow to equity (FCFE) for that year? a. P21.8M b. P18.8M c. P24.2M d. P25.0M e. None of the above.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter21: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 9P

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