单选题
An analyst does research on a company's income and cash flow statement. The company classifies interest expense as an operating activity and reports the following information: ·Cash flow from operating activities is $200000 ·Capital expenditures is $120000 ·Free cash flow to the firm is $90000 ·Free cash flow to equity is $70000 ·Tax rate is 40% The company's interest expense is closest to: A. $6000 B. $16667 C. $25000
【正确答案】
B
【答案解析】[解析] free cash flow to the firm=cash flow from operating-capital expenditures+interest×(1tax rate) $90000=$200000-$120000+interest×(1-0.4),interest=$16667。