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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 2019: EBITDA = $22 million -Depreciation $ 2 million - Interest $ 4 million EBT = $16 million - Taxes = $ 6.40 million Net Income = $ 9.60 million The change in non-cash working capital in 2019 is 10 million. Capital expenditure during the year is 5 million. a. What would be the FCFF and FCFE if the firm issues 8 million new debt during the year and retires 2 million old debt? b. What would be the FCFF and FCFE if the firm maintains a constant debt ratio of 40%? c. Suppose that the firm maintains a constant debt ratio of 40%, how would you assess the firms dividend policy if

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