You have just obtained financial information for the past 2 years for Bridgewater Equine Corporation. Answer the following questions.
a. What is the net operating profit after taxes (NOPAT) for 2007?
b. What are the amounts of net operating working capital for both years?
c. What are the amounts of total net operating capital for both years?
d. What is the free cash flow for 2007?
e. How can you explain the large increase in dividends in 2007?

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Bridgewater Equine Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Sales Operating costs excluding depreciation Depreciation Earnings before interest and taxes Less interest Earnings before taxes Taxes (40%) Net income available to common stockholders Common dividends 2007 $1,200.0 1,020.0 30.0 $ 150.0 21.7 $ 128.3 51.3 $ 77.0 $ 60.5 2006 $1,000.0 850.0 25.0 $ 125.0 20.2 $ 104.8 41.9 62.9 $ 4.4 SA S