The Blanco River Brewery has the following financial data. Amortization $99 Capi
ID: 2639228 • Letter: T
Question
The Blanco River Brewery has the following financial data.
Amortization
$99
Capital Expenditures
$397
Common Stock
$1459
Depreciation
$194
Equity
$2951
Net Income
$661
New Bond Issues
$207
Principal Repayments
$106
Sales
$3793
Working Capital Needs
$114
Calculate the Free Cash Flow to Equity (FCFE) to the nearest dollar.
Amortization
$99
Capital Expenditures
$397
Common Stock
$1459
Depreciation
$194
Equity
$2951
Net Income
$661
New Bond Issues
$207
Principal Repayments
$106
Sales
$3793
Working Capital Needs
$114
Explanation / Answer
Hi,
Please find the detailed answer as follows:
FCFE = Net Income - Net Capital Expenditure - Change in Net Working Capital + New Debt - Debt Repayment = 661 - (397 - 99 - 194) - 114 + 207 - 106 = $544
Answer is $544
Thanks.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.