Question: Below are summary numbers from reformulate balance sheets for 2007 and 2006 for Kimberly-Clark Corporation, the paper products company, along with numbers from the reformulated
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a. The net payout to shareholders (dividends and share repurchases minus share issues) in 2007 was $3,405.9 million. Calculate free cash flow using Method 1 and Method 2.
b. The firms reported cash flow from operations of $2,429 million in its 2007 cash flow statement and also reported net interest payments of $142.4 million. It reported $898 million in cash spent on investing activities, but this was after including a net $56 million from liquidating short-term interest-bearing securities. The firm's statutory tax rate is 36.6 percent. Calculate free cash flow from these reportednumbers.
2007 2006 Operating assets Operating liabilities Financial assets Financial obligations $18,057.0 6,011.8 382.7 6,496.4 2,740.1 147.1 $15,796.2 5,927.2 270.8 4,395.4 Operating income (atter tax) Net financial expense (after tax)
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a Reformulate the balance sheet 2007 2008 Operating assets 180570 167962 Opera... View full answer
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