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Assume a firm finances a fixed percentage of its capital spending and investments in working...

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Assume a firm finances a fixed percentage of its capital spending and investments in working capital with debt. A firm has a total debt ratio of 60%. It has $1,500 in capital expenditures, $1,200 in depreciation and the change in working capital is $100. With a net income of $3,000, what is the firm's FCFE per share if there are 1000 shares outstanding. Use the following: FCFE = NI - (1 - Debt ratio)(Capital Spending + change in Working Capital - Depreciation) 1) $2.60 2) $2.70 3) $2.76 4) $2.84

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