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please help asap You're a stock analyst trying to forecast a firm's operating free cash flow (OFCF, which excludes interest tax shields) based on figures
please help asap
You're a stock analyst trying to forecast a firm's operating free cash flow (OFCF, which excludes interest tax shields) based on figures from your forecast cash flow statement. Assume that the: - Debt liabilities are priced at par, so interest expense (IntExp) equals actual interest payments. This means that interest expense is a cash flow, so interest expense is not added back to net income in the 'operating activities' section of the cash flow statement; - 'Net cash provided by investing activities' equals negative one multiplied by the firm's positive capital expenditure. - 'Net cash provided by financing activities' equals negative one multiplied by the firm's dividend payments. - Corporate tax rate is 30%. OFCF equals 'Net cash provided by operating activities' plus: Select one: a. 'Net cash provided by investing activities'. b. 'Net cash provided by investing activities' plus IntExp*(1-tc). c. 'Net cash provided by investing activities' plus IntExp. d. 'Net cash provided by financing activities' plus IntExp*(1-tc). e. 'Net cash provided by financing activities' plus IntExpStep by Step Solution
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