Question: The financial statements for Nike, Inc., are provided in Appendix D at the end of the text. a. Determine the free cash flow for the

The financial statements for Nike, Inc., are provided in Appendix D at the end of the text.
a. Determine the free cash flow for the year ended May 31, 2010. Assume that 90% of additions to property, plant and equipment were used to maintain productive capacity.
b. How might a lender use free cash flow to determine whether or not to give Nike, Inc. a loan?
c. Would you feel comfortable giving Nike a loan based on the free cash flow calculated in (a)?

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