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EleoNora [17]
1 year ago
7

______ approach to capital budgeting discounts the after-tax cash flow from a project going to the equity holders of a levered f

irm.
Business
1 answer:
lord [1]1 year ago
4 0

Flow to Equity (FTE) is the approach to capital budgeting that discounts the after-tax cash flow from a project going to the equity holders of a levered firm.

An alternative capital budgeting strategy is the flow to equity (FTE) or free cash flow approach. The FTE approach merely requires that equity capital be discounted at the cost of the cash flows from the project to the equity holders of the leveraged firm. The amount of cash that a company's equity shareholders have access to after all costs, reinvestment, and debt repayment is taken into account is known as flow to equity. Free Cash Flow to Equity (FCFE) is calculated as Net Income - (Capital Expenditures - Depreciation) - (Change in Non-cash Working Capital) - (Change in Non-cash Equity) + (New Debt Issued - Debt Repayments) This is the cash flow that can be used to repurchase stock or pay dividends.

More about cash flow brainly.com/question/17406590

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Answer:

d. can be estimated even if the firm’s bonds are not publicly traded, by looking at the yield to maturity on bonds outstanding from peer group firms with similar ratings and maturity

Explanation:

The cost of Debt for a firm is estimated even if the firm's bonds are not publicly traded, by looking at the yield on bonds outstanding from peer group firms with similar ratings and maturity.

3 0
3 years ago
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Answer: $1,355.41

Explanation:

Business expense deductible:

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As Ryan can only provide documentation for 1,300 miles, this is what the deductible will be based on:

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3 0
3 years ago
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Answer:

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Theodora, the human resource manager of a firm, is planning how to support a strategy of empowering employees. currently, jobs a
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Based on the scenario above, a way that could redesign the support the goals for employee empowerment is through the employees’ responsibilities in which it should be more focused on higher level goals and that the higher level goals should be more broadly defined.

6 0
3 years ago
A customer subscribes to a $10,000 limited partnership interest. The commission is $1,000. The up-front costs are $500 for legal
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3 years ago
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