Question
A firm with no debt produced Free Cash Flow of $2000 in 2016 and borrowed money to buy back shares of stock. In other words
A firm with no debt produced Free Cash Flow of $2000 in 2016 and borrowed money to buy back shares of stock. In other words , total claims unchanged. Borrowing in 2016 amounted $1200 generating interest expense $60. The firm made no capital investment but add $1,000 to its cash during 2016. Taxrate 25% What is the cash flow to shareholder 2016?
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Business Mathematics
Authors: Charles MillerStanley SalzmanStanley SalzmanGary Clendenen
11th Edition
0321500121, 9780321500120
