09Class13

09Class13 - Cash Flow From Financing Company Repay Debt...

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1 Company Repay Debt Borrow, Issue Debt Issue Stock Reacquire Stock Pay Dividends Cash Flow From Financing
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2 Debt and Repay Debt Equity Investors Borrow, Issue Debt Issue Stock Reacquire Stock Pay Dividends - Cash Flow From Financing
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3 Cash Flow to Debt and Equity Investors = - Cash Flow From Financing + (1-T) Interest Paid Cash Flow to Debt and Equity Investors
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4 From the Statement of Cash Flows: CFO + CFI + CFF = ∆ Cash CFO + CFI - ∆ Cash = -CFF. Cash Flows to Debt and Equity Investors = CFO + CFI -∆Cash + (1-T) Interest Paid Alternative Formula
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Exhibit 12.4 - Pepsi Year +1 Given the information below, calculate the Free Cash Flow to Debt and Equity Investors: 5 Cash Flow from Operations 6,428.2 After-Tax Interest Expense 143.8 (204 times 0.706) Change in Cash 56.7 Cash Flow from Investing (2,742.6)
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6 Cash Flow to Equity Holders = Cash flow to Debt and Equity Holders – Cash Flow to Debt Holders Cash Flow to Debt Holders equal = After-tax Interest Paid - Debt Financing Debt Financing = Financing Cash Flow from Debt Cash Flow to Equity Holders
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This note was uploaded on 04/21/2009 for the course MGMT 126 taught by Professor Miller during the Winter '09 term at UCLA.

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09Class13 - Cash Flow From Financing Company Repay Debt...

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