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A company has free cash flow of $700 and cash flow to shareholders of $200. Interest expense for the year was $400. a.) What must be the net new borrowing, as reflected by the change in long-term debt

Respuesta :

Answer:

the net new borrowing, as reflected by the change in long-term debt is $100

Explanation:

a. The calculation of the net new borrowing is given below:

Net new borrowing is

= cash inflow = cash outflow

= $700 - $200 - $400

= $700 - $600

= $100

Hence, the net new borrowing, as reflected by the change in long-term debt is $100