Use the Tables for the Question(s)below

question 48

Multiple Choice

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 $7 000, after-tax interest expense of $1 000, and an increase in debt of $3 000?

• A)$7 000
• B)$8 000
• C)$6 000
• D)$9 000

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Definitions:

Liability

Refers to the state of being legally responsible for something, particularly in reference to debts or legal obligations.

ULPA

A high-efficiency air filter standard known as Ultra Low Particulate Air, capable of removing at least 99.99% of dust, pollen, mold, bacteria, and other airborne particles.

Limited Partner

An investor in a partnership who is not involved in daily business operations and whose liability is limited to the amount of their investment.

Withdraw

To remove oneself or something from consideration, participation, or engagement in a particular activity, agreement, or situation.