Question

The management of Morrow Inc. is trying to decide whether it can increase its dividend. During the current year, it reported net income of $875,000. It had net cash provided by operating activities of $734,000, paid cash dividends of $70,000, and had capital expenditures of $280,000. Compute the company’s free cash flow, and discuss whether an increase in the dividend appears warranted. What other factors should be considered?



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  • CreatedJanuary 30, 2014
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