The Three Specific Cash Flows Associated with Lenders That Are

question 80

Multiple Choice

The three specific cash flows associated with lenders that are included in the free cash flow to equity (FCFE) approach are

• A) the interest expense on existing debt, the repayment of debt principal, and the proceeds from new debt issues.
• B) the interest expense on existing term debt, the repayment of debt principal, and the proceeds from new equity issues.
• C) the interest expense on existing debt, the repayment of debt principal, and the payment of dividends.
• D) None of the above.