Projected Free Cash Flow Available to Equity (FCFE), Is Defined

question 49

Multiple Choice

Projected free cash flow available to equity (FCFE) , is defined as the amount of cash available to shareholders after:

• A) All liabilities are paid.
• B) All assets are liquidated.
• C) All expenses, reinvestment, and debt and preferred dividend payments.
• D) All of the above.

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Definitions:

Recoverable Amount

The higher of an asset's fair value less costs to sell and its value in use. It's the estimated amount an entity can obtain from an asset's use or sale, covering its carrying amount.

Carrying Amount

The value at which an asset is recognized on the balance sheet after deducting accumulated depreciation and impairment charges.

Cost Method

An accounting method used to record investments in which the investment is recorded at cost and dividends are recognized as income.

Dividends

Dividends are payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.