Which one of the
following indicates the correct effect on the free cash flow to the firm (FCFF)
and FCFE for a change in the income and balance sheet items? Assume a R100
increase and a tax rate of 35%.
Change in
FCFF Change in FCFE

Question

Which one of the
following indicates the correct effect on the free cash flow to the firm (FCFF)
and FCFE for a change in the income and balance sheet items? Assume a R100
increase and a tax rate of 35%. 
                                                                      Change in
FCFF            Change in FCFE

Answer

Property,
plant and equipment                       +100                        +100

Answer

Depreciation                                                       -35                              +35

Answer

E arnings before interest
and taxes   (EBIT)       +65                          +65

Crowdly

Which one of the following indicates the correct effect on the free cash flow to...

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