Volunteer Enterprises Has the Following Information for the Current Year

question 19

Multiple Choice

Volunteer Enterprises has the following information for the current year.Calculate its free cash flow to equity. $$\begin{array} { l r } \text { FCF } & \$ 1,000 \\\text { Interest expense } & \$ 40 \\\text { Frincipal payments } & \$ 200 \\\text { New debt } & \$ 300 \\\text { Tax rate } & 25 \%\end{array}$$ ?

• A) $1,070
• B) $1,177
• C) $1,295
• D) $1,424
• E) $1,567

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Definitions:

Circuit

A closed path through which electric current flows, typically involving power sources, loads, and conductive materials.

DMM

Stands for Digital Multimeter, an instrument that measures electrical values such as voltage, current, and resistance.

Current Flow

The movement of electric charge carriers, like electrons, through a conductor or circuit, creating electric current.

Inductive Measurement

A technique for measuring a property or component by utilizing the principle of inductance or the change in inductance in a system.