Dicks Sporting Goods is a chain of full-line sporting goods retail stores offering a broad assortment of
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a. Beginning with cash flows from operating activities, calculate free cash flows to all debt and equity capital stakeholders for Dick’s Sporting Goods for fiscal years ending in 2009, 2008, and 2007.
b. Beginning with cash flows from operating activities, calculate free cash flows for common equity shareholders for Dick’s Sporting Goods for fiscal years ending in 2009, 2008, and 2007.
c. Reconcile the amounts of free cash flows for common equity shareholders for Dick’s Sporting Goods for fiscal years ending in 2009, 2008, and 2007 with Dick’s Sporting Goods’ sources of cash flow from equity shareholders.
d. Why do the free cash flows to all debt and equity capital stakeholders for Dick’s Sporting Goods change so much from 2007 through 2009? In each of these three years, why do the free cash flows to all debt and equity capital stakeholders differ so much from the free cash flows to common equity shareholders?
e. In each of these three years, Dick’s Sporting Goods produces negative free cash flows for common shareholders. Does that imply that Dick’s Sporting Goods is destroying the value of common equity? Explain.
Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...
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Financial reporting, financial statement analysis and valuation a strategic perspective
ISBN: 978-0324789416
7th Edition
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
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