In addition to the Circuit City information provided in Problem 34, the following information is available.
• Weighted average common shares outstanding were:
Year Shares
2006................................... 165,134,000
2007................................... 170,448,000
2008................................... 177,456,000
• Circuit City has no preferred stock.
• Interest expense for each year was as follows:
Year Amount
2006................................. $3,143,000,000
2007................................. 1,519,000,000
2008................................. 1,180,000,000
Required:
(a) Using only the information presented, calculate Circuit City’s cash interest coverage.
(b) Calculate Circuit City’s capital expenditure ratio.
(c) Calculate Circuit City’s cash flow per share.
(d) Calculate Circuit City’s basic earnings per share.
(e) Interpret your calculations from year to year. Comment on significant relationships.
(f) Calculate Circuit City’s free cash flow.