medium · Corporate Credit Analysis

Titan Energy has $500M in debt and generates $40M in annual Free Operating Cash Flow (FOCF). The company pays $10M in annual dividends to common shareholders.

Based on the Discretionary Cash Flow (DCF), what is the company's implied deleveraging horizon to repay its debt entirely?

  1. 50.0 years
  2. 12.5 years
  3. 10.0 years
  4. 16.7 years

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