XYZ Has No Excess Cash and a Corporate Tax Rate

question 118

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

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