Question: E10.7. Applying Cash Flow Relations (Medium) An analyst prepared reformulated balance sheets for the years 2009 and 2008 as follows. (in millions of dollars): Operating

E10.7. Applying Cash Flow Relations (Medium) An analyst prepared reformulated balance sheets for the years 2009 and 2008 as follows. (in millions of dollars): Operating assets 2009 $640 Financial assets 250 890 Financial debt 170 Operating abilities Common equity 20 700 $890 2008 The firm reported $100 million in comprehensive income for 2009 and no net financial income or expense. 2. 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? Applications

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