Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko, 2013-2018
Pro Forma Assets & Liabilities for Ideko, 2013-2018

-What is the free cash flow to equity holders for a firm with free cash flow of $9 000, after-tax interest expense of $3 000, and an increase in debt of $1 000?
A)$7 000
B)$8 000
C)$9 000
D)$6 000

Question

Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko, 2013-2018
  Pro Forma Assets & Liabilities for Ideko, 2013-2018
 
-What is the free cash flow to equity holders for a firm with free cash flow of $9 000, after-tax interest expense of $3 000, and an increase in debt of $1 000?
A)$7 000 
B)$8 000 
C)$9 000 
D)$6 000

Quizplus · Accepted Answer

Free cash flow to equity holders = Free cash flow + After-tax interest expense - Increase in debt= $9,000 + $3,000 - $1,000= $11,000

Use the Tables for the Question(s)below