frr07172018-04-17 17:12:15

Increasing common dividends = $110 million, which is a use of FCFE—no effect on FCFE. Share repurchase = $60 million, which is a use of FCFE—no effect on FCFE. Debt repayment = $100 million, which will reduce FCFE by the full amount. Therefore, FCFE will decrease by $100 million. Reducing debt by $100 million reduces FCFE (the amount of cash available to equity holders) by that amount. The cash dividend and the share repurchase are uses of FCFE and do not change the amount of cash available to equity holders. 老师您好。这道题请你解释一下，为什么前两种方式是不影响fcfe？谢谢！