a. A firm generated $143 million in free cash flow and paid a net dividend of $49

Question:

a. A firm generated $143 million in free cash flow and paid a net dividend of $49 million to shareholders. How much was paid to debt holders and debt issuers?
b. A firm paid a dividend to shareholders of $162 million and repurchased stock for $53 million. There were no share issues. The firm received net cash of $86 million from debt financing transactions. What was its free cash flow?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial statements

ISBN: 978-007802531

5th Edition

Authors: Stephen Barrad

Question Posted: