During the year, the XYZ Company paid $300,000 in interest. The company is in the 25% tax bracket. It paid off $175,000 in notes payable and issued an additional $400,000 in long-term debt. The firm paid $125,000 in dividends and bought back $100,000 in common stock. It also increased its short-term investments by $60,000. Based on the information above, calculate the FCF for XYZ Company. O $1,072,500 O $285,000 O $1,085,000 $260,000
During the year, the XYZ Company paid $300,000 in interest. The company is in the 25% tax bracket. It paid off $175,000 in notes payable and issued an additional $400,000 in long-term debt. The firm paid $125,000 in dividends and bought back $100,000 in common stock. It also increased its short-term investments by $60,000. Based on the information above, calculate the FCF for XYZ Company. O $1,072,500 O $285,000 O $1,085,000 $260,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![During the year, the XYZ Company paid $300,000 in interest. The company
is in the 25% tax bracket. It paid off $175,000 in notes payable and issued
an additional $400,000 in long-term debt. The firm paid $125,000 in
dividends and bought back $100,000 in common stock. It also increased its
short-term investments by $60,000.
Based on the information above, calculate the FCF for XYZ Company.
O $1,072,500
$285,000
O $1,085,000
O $260,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54efd2f9-6c1a-4abb-9910-775d9301305d%2Fbeb9b08d-2311-4837-8d0c-cbb76545dbb2%2Ff7f26g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:During the year, the XYZ Company paid $300,000 in interest. The company
is in the 25% tax bracket. It paid off $175,000 in notes payable and issued
an additional $400,000 in long-term debt. The firm paid $125,000 in
dividends and bought back $100,000 in common stock. It also increased its
short-term investments by $60,000.
Based on the information above, calculate the FCF for XYZ Company.
O $1,072,500
$285,000
O $1,085,000
O $260,000
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