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Which of the following is a determinant of a firms free cash flows? Cost of equity Firms business risk Required investments in operating capital The
Which of the following is a determinant of a firms free cash flows?
Cost of equity
Firms business risk
Required investments in operating capital
The following table presents some of the current years financial data for the Green Zebra Media Company. Complete the table by computing Green Zebras free cash flows and fundamental value (rounded to the nearest whole dollar) based solely on this years information:
Variable | Value |
---|---|
Sales revenue | $300,000 |
Operating costs and taxes | $55,000 |
Required investments in operating capital | $25,000 |
Weighted average cost of capital | 6.50% |
Annual free cash flow |
|
Fundamental value |
|
Assuming all other things being equal, if Green Zebras costs of debt increases, the firms will
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