In the table below is selected information for Sprigue Company. All figures are in thousands and...

 

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In the table below is selected information for Sprigue Company. All figures are in thousands and represent expectations of the future. Year Net Income Dividends Depreciation Increase in working capital Capital expenditures New Debt issued Old Debt retired New Equity issued 2005 2006 2007 2008 $5,175 $6,210 $7,462 $8.570 932 1,118 1,285 702 793 896 1,035 1,242 1,118 8,625 10,350 9,315 4.500 5.500 3.900 750 990 2,000 0 0 0 773 621 675 5,625 900 987 1.823 2009 $8,998 2,250 1,013 428 3,571 0 2,000 0 a. Calculate the expected free cash flow to equity for the years 2005 to 2009. b. Explain the expected changes in debt levels over the five years In the table below is selected information for Sprigue Company. All figures are in thousands and represent expectations of the future. Year Net Income Dividends Depreciation Increase in working capital Capital expenditures New Debt issued Old Debt retired New Equity issued 2005 2006 2007 2008 $5,175 $6,210 $7,462 $8.570 932 1,118 1,285 702 793 896 1,035 1,242 1,118 8,625 10,350 9,315 4.500 5.500 3.900 750 990 2,000 0 0 0 773 621 675 5,625 900 987 1.823 2009 $8,998 2,250 1,013 428 3,571 0 2,000 0 a. Calculate the expected free cash flow to equity for the years 2005 to 2009. b. Explain the expected changes in debt levels over the five years

Answer rating: 100% (QA)

a Year Net income Add depreciation Deduct increase in working capital Deduct capital e... View the full answer