Question: An analyst prepared reformulated balance sheets for the year 2009 and 2008 follows (in millions of dollars): The firms reported $100 million in comprehensive income

An analyst prepared reformulated balance sheets for the year 2009 and 2008 follows (in millions of dollars):

An analyst prepared reformulated balance sheets for the year 200

The firms reported $100 million in comprehensive income for 2009 and no net financial income or expense.
(a) Calculate the free cash flow for 2009.
(b) How was the free cash flow disposed of?
(c) How can a firm with financial assets and financial liabilities have zero net financial income or expense?

2009 2008 $640 250 890 170 20 700 $890 Operating assets Financial assets $590 110 700 130 30 540 $700 Financial debt Operating labilities Common equity

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a Use the free cash flow generation equation C I OI D NOA As there was no net financial income or ex... View full answer

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