Analyse the likely impact on fcff and fcfe from an increase


Given the following:

EBIT   80.0 

EBIT (1-T)  66.4 

Depreciation and Amortization 33.0 

Capital Expenditures  11.2

Increase in Net Working Capital 32.7

Interest payment   5.0

Tax rate at 17% 

(a) Compute FCFF. 

(b) Compute FCFE. 

(c) Analyse the likely impact on FCFF and FCFE from an increase of dividend policy.

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Business Economics: Analyse the likely impact on fcff and fcfe from an increase
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