Greener Side Fertilizer, Inc. estimates that its total financing needs for the coming year will be...

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Greener Side Fertilizer, Inc. estimates that its total financing needs for the coming year will be $35 million. The firm's required financing payments on its debt and equity financing during the coming fiscal year will total $15 million. The firm's financial manager estimates that operating cash flows (OCFS) for the coming year will total $30.1 million and that the following changes will occur in the accounts noted. Account Gross fixed assets Change in current assets Change in accounts payable Change in accrued liabilities Forecast change +$5 million +$3 million +$2 million + $0.6 million a. Estimate Greener Side's free cash flow (FCF) for the coming year. b. How much of the free cash flow will the firm have available as a source of new internal financing in the coming year? c. How much external financing will Greener Side need during the coming year to meet its total forecast financing needs? Greener Side Fertilizer, Inc. estimates that its total financing needs for the coming year will be $35 million. The firm's required financing payments on its debt and equity financing during the coming fiscal year will total $15 million. The firm's financial manager estimates that operating cash flows (OCFS) for the coming year will total $30.1 million and that the following changes will occur in the accounts noted. Account Gross fixed assets Change in current assets Change in accounts payable Change in accrued liabilities Forecast change +$5 million +$3 million +$2 million + $0.6 million a. Estimate Greener Side's free cash flow (FCF) for the coming year. b. How much of the free cash flow will the firm have available as a source of new internal financing in the coming year? c. How much external financing will Greener Side need during the coming year to meet its total forecast financing needs?

Answer rating: 100% (QA)

a Free Cash Flow FCF Operating Cash Flows OCFs Required Fi... View the full answer