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Jennifer Samano
on Oct 19, 2024

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The free cash flow to the firm is reported as $275 million. The interest expense to the firm is $60 million. If the tax rate is 35% and the net debt of the firm increased by $33 million, what is the free cash flow to the equity holders of the firm?

A) $269 million
B) $296 million
C) $305 million
D) $327 million

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Interest Expense

The cost incurred by an entity for borrowing funds, represented as a charge against its earnings or net income.

Net Debt

The amount of debt remaining after deducting cash and cash equivalents from total debt obligations.

  • Compute the free cash flow available to the firm and its equity stakeholders.
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JB
Jeremy BrownOct 25, 2024
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