Question: using the below balance sheet answer the following questions: Calculate Net Investment in Operating Capital in Year-2 Calculate Free Cash Flow of Year-2 Assets Cash

using the below balance sheet answer theusing the below balance sheet answer the
using the below balance sheet answer the following questions: Calculate Net Investment in Operating Capital in Year-2 Calculate Free Cash Flow of Year-2 Assets Cash 12 9 Receivables 49 53 Short-term investments 19 19 Inventories 124 121 Net Plant and Equipments 432 414 Total Assets 636 616 Liabilities Accounts Payable 13 4 Notes Payable 20 24 Long Term Bonds 230 240 Total Liabilities 263 268 Equity Common Shares 210 200 Retained Earnings 163 148 Total Equity 373 348 Total Liabilities and 636 616 EquityEBIT 120 112 Interest Expense 11 9 Tax Rate 30% 30% Market Price Per Share 5.05 4.75 Common Shares 75.2 74.8 Outstanding (Millions) WACC 10% 10% Dividend Declared and Paid 61.3 54.1 Additional Information Free Cash Flow is expected to grow by 1% every year from Year-2. Net Investment in Operating Capital is growing by 10% every year from Year-1. There was no share repurchase in Year-2

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