Assume the following information (numbers in millions). Note: You can copy this table directly into Excel. Data Item 2022 2023 EBIT ($) 13831 8891 Interest Expense ($) 113 -1082 Operating Assets ($) 34985 36920 Operating Liabilities 25,365 25703 ($) Net Fixed Assets ($) 41421 57002 Debt ($) 6942 10548 Tax Rate (%) 8.3% -50.1% What is free cash flow to equity in 2023? IMPORTANT! It will be very easy to goof up this problem given the negative interest expense and negative tax rate. Remember, if you subtract a negative this turns it into a positive. Hint: It will be so amazingly useful to remember the FCFE extra credit problem. To help, please note that the answer ranges between 1.300 and 2,100.
Assume the following information (numbers in millions). Note: You can copy this table directly into Excel. Data Item 2022 2023 EBIT ($) 13831 8891 Interest Expense ($) 113 -1082 Operating Assets ($) 34985 36920 Operating Liabilities 25,365 25703 ($) Net Fixed Assets ($) 41421 57002 Debt ($) 6942 10548 Tax Rate (%) 8.3% -50.1% What is free cash flow to equity in 2023? IMPORTANT! It will be very easy to goof up this problem given the negative interest expense and negative tax rate. Remember, if you subtract a negative this turns it into a positive. Hint: It will be so amazingly useful to remember the FCFE extra credit problem. To help, please note that the answer ranges between 1.300 and 2,100.
Chapter6: Investing And Financing Activities
Section: Chapter Questions
Problem 3.2C
Related questions
Question
![Assume the following information (numbers in millions).
Note: You can copy this table directly into Excel.
Data Item
EBIT ($)
2022
2023
13831
8891
-1082
Interest Expense ($) 113
Operating Assets ($) 34985
36920
Operating Liabilities
25,365
25703
($)
Net Fixed Assets ($) 41421
57002
Debt ($)
6942
10548
Tax Rate (%)
8.3%
-50.1%
What is free cash flow to equity in 2023?
IMPORTANT! It will be very easy to goof up this problem given
the negative interest expense and negative tax rate. Remember,
if you subtract a negative this turns it into a positive.
Hint: It will be so amazingly useful to remember the FCFE extra
credit problem.
To help, please note that the answer ranges between 1.300 and
2,100.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62bcb352-084d-49e3-8e2a-6ce439c7d9dd%2F4a9af367-077f-402a-83aa-cbc4da83c1ba%2F70jgmw8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume the following information (numbers in millions).
Note: You can copy this table directly into Excel.
Data Item
EBIT ($)
2022
2023
13831
8891
-1082
Interest Expense ($) 113
Operating Assets ($) 34985
36920
Operating Liabilities
25,365
25703
($)
Net Fixed Assets ($) 41421
57002
Debt ($)
6942
10548
Tax Rate (%)
8.3%
-50.1%
What is free cash flow to equity in 2023?
IMPORTANT! It will be very easy to goof up this problem given
the negative interest expense and negative tax rate. Remember,
if you subtract a negative this turns it into a positive.
Hint: It will be so amazingly useful to remember the FCFE extra
credit problem.
To help, please note that the answer ranges between 1.300 and
2,100.
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