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Please explain. The firm pays 100 of cash dividends to common stockholders. What is the effect on this periods Free Cash Flow to the Firm
Please explain.
The firm pays 100 of cash dividends to common stockholders. What is the effect on this periods Free Cash Flow to the Firm (FCFF) and Free Cash Flow to Equity (FCFE)?
No change to FCFF and no change to FCFE | ||
No change to FCFF, and 100 reduction to FCFE | ||
100 reduction to FCFF, and no change to FCFE | ||
100 reduction to FCFF, and 100 reduction to FCFE
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