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XYZ Has No Excess Cash and a Corporate Tax Rate

Question 92

Multiple Choice

XYZ has no excess cash and a corporate tax rate of 30%.The firm plans to issue new debt of $2 million this year.What is the free cash flow to equity?


A) $940,000
B) $1.51 million
C) $1.09 million
D) $2.94 million
E) $3.09 million

Correct Answer:

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