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Assume that Rubberman Corporation has the following income statement for year 2 0 1 9 : EBITDA = $ 2 2 million - Depreciation $
Assume that Rubberman Corporation has the following income statement for year : EBITDA $ million Depreciation $ million Interest $ million EBT $ million Taxes $ million Net Income $ million The change in noncash working capital in is million. Capital expenditure during the year is million. a What would be the FCFF and FCFE if the firm issues million new debt during the year and retires million old debt? b What would be the FCFF and FCFE if the firm maintains a constant debt ratio of c Suppose that the firm maintains a constant debt ratio of how would you assess the firms dividend policy if
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