Question: Please answer quickly and not be handwritten Question 1: Suggest a logical answer(s) why Free Cash Flow (FCF) is not a value-added concept. (Do your
Question 1: Suggest a logical answer(s) why Free Cash Flow (FCF) is not a value-added concept. (Do your best, and any logical discussion will count.) (12 points) Question 2: A. The following numbers were extracted from a balance sheet (in millions): Of the total liabilities, $190 million were deemed to be financial liabilities. Required: Prepare a reformulated balance sheet that distinguishes items involved in operation from those involved in financing activities. (9 points) B. An income statement consists of the following line items (in millions): Assume that the firm pays no taxes. Required: Prepare a reformulated income statement that distinguishes items involved in operation from those inyolved in financing activities, (9 points)
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