Company A is expected to have cash flow from operations of $500000 in the coming year. Depreciation for the year will be $100000. The firm's
Company A is expected to have cash flow from operations of $500000 in the coming year.
Depreciation for the year will be $100000. The firm's corporate tax rate is 30%.
It is expected that $200000 of operating cash flow will be invested in new fixed assets.
Cash flows are expected to grow at 6% per year.
The appropriate market capitalization rate is 15% per year.
The firm has $1000000 in outstanding debt.
What is projected free cash flow to equity of Company A for the coming year?
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Authors: A. C. Pigou
1st Edition
1443722766, 978-1443722766
