For LaForge Systems, whose financial statements are given in Problem 2, show the adjustments from the current

Question:

For LaForge Systems, whose financial statements are given in Problem 2, show the adjustments from the current levels of CFO (which is $427 million), EBIT ($605 million), and EBITDA ($785 million) to find:

A. FCFF.

B. FCFE.

Data From Problem 2:-

LaForge Systems, Inc. has net income of $285 million for the year 2008. Using information from the company’s financial statements given here, show the adjustments to net income that would be required to find:

A. FCFF.

B. FCFE.

C. In addition, show the adjustments to FCFF that would result in FCFE.

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Related Book For  book-img-for-question

Equity Asset Valuation

ISBN: 9781119850519

3rd Edition

Authors: Jerald E Pinto, CFA Institute

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