Question: Question 5: Cash Flow Analysis (15 marks) In the table below is selected information of Ocean Corporation. All figures are in thousands and represent expectations

 Question 5: Cash Flow Analysis (15 marks) In the table below

Question 5: Cash Flow Analysis (15 marks) In the table below is selected information of Ocean Corporation. All figures are in thousands and represent expectations of the future. Year/HK$O00 Net Incom Dividends Depreciation Increase in working capital New debt issued Old debt retired New equitv issued Capital expenditures 2012 2013201420152016 5,1756.2107,462 8,5709,000 773 621 675 9004.5005,500 3,900 987 9321,1181,2852,250 8961,020 800 702 793 1,0351,2421,118 750 9902,0002,000 1,800 0 5,6258,62510,3509,3155,600 Required: a. Define free cash flow to equity. (3 marks) b. Calculate the expected free cash flow to equity for the years 2012-2016. Please present the answer in a table format. (10 marks) Explain the expected changes in debt levels over the five years. (2 marks) c

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