A company has a target debt ratio of 40% of assets. In the most recent period, they have generated net income of $500 million, with the only noncash charge in the income statement being a depreciation charge of $100 million. The company invested $200 million in fixed assets, and working capital on the balance sheet increased by $50 million. The free cash flow to equity of the firm is?

Answer rating: 100% (QA)

To calculate the free cash flow to equity FCFE we need to follow the for... View the full answer