What is Houston free cash flow for common equity

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Reference no: EM133012197

Question - Use the following financial data of Houston Corporation to answer the next two questions.

Houston's Cash Flows for the year: (in thousands of dollars)

Net Cash Flow from Operations 564

Interest Expense Before Tax 150

Net Change in Cash Required for Operations -75

Net Cash Flow from Investing -287

Net Cash from Debt Financing 210

Effective Income Tax Rate 20%

A. Using the above information, what is Houston's free cash flow for all debt and equity stakeholders for the year?

B. Using the financial information in the same Question above, what is Houston's free cash flow for common equity shareholders for the year?

Reference no: EM133012197

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