Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This problem uses data for Tesla's FCFE in 2 0 2 3 , except operating liabilities which is a littl bit different for each student.

This problem uses data for Tesla's FCFE in 2023, except operating liabilities which is a littl bit different for each student.
Assume the following information (numbers in millions).
Note: You can copy this table directly into Excel.
\table[[Data Item,2022_,2023_],[EBIT ($),13831,8891],[Interest Expense ($),113,-1082],[,,],[Operating Assets ($),34985,36920],[Operating Liabilities ($),24,720,25703],[Net Fixed Assets ($),41421,57002],[Debt ($),6942,10548],[,,],[Tax Rate (%),,-50.1%]]
What is free cash flow to equity in 2023?
IMPORTANT! It will be very easy to goof up this problem given the negative interest expense and negative tax rate. Remember, if you subtract a negative this turns it into a positive.
Hint: It will be so amazingly useful to remember the FCFE extra credit problem.
To help, please note that the answer ranges between 2,000 and 2,100.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

7th edition

978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792

Students also viewed these Finance questions