Question
In: Finance
You are an analyst that has been requested to assess FCFF and FCFE in the recently...
You are an analyst that has been requested to assess FCFF and FCFE in the recently completed financial year ended 30 June 2016 in a company under review. You have been provided with the information below:
$ thousands
EBITDA
64,208
Depreciation
15,144
Net Interest Expense
5,550
Capital Expenditure net of proceeds on disposal
16,240
Increase in Net Operating Working Capital
1,190
New issues of unsecured notes (bonds)
10,440
Unsecured notes redeemed
7,642
Issues of new Ordinary Shares
13,910
Ordinary Share Buy-backs
8,012
Stock dividends (bonus shares)
2,686
Ordinary Share Cash dividends
6,876
New issues of Preference Shares
1,504
Preference Share redemptions
1,370
Preference Share Cash dividends
92
Other Information:
Company Tax Rate is a flat 30%. You are to ignore the possible existence of imputation (franking) credits. All preference shares are classed as equity by this firm. Depreciation is the only Non-Cash Charge. The only debt in this firm comes from unsecured notes.
Tasks:
(a) Calculate FCFF (Free Cash Flow to the Firm)
(b) Calculate FCFE (Free Cash Flow to Equity)
(c) Calculate the dividend payout ratio and the retention ratio.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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B) Cash Operating expenses
C) Depreciation
D) Interest Expense
E) EBIT
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G) Accounts Payable
H) Property, Plant and equipment
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