The following information is from the financial report of a pure equity company (one with no net
Question:
The following information is from the financial report of a pure equity company (one with no net debt). In millions of dollars,
Common shareholders' equity, December 3 1, 2011 ........................... 174.8
Common dividends, paid December 2012 ................................................. 8.3
Issue of common shares on December 31, 2012 .................................... 34.4
Common shareholders' equity, December 3 1, 2012 ............................ 226.2
The firm had no share repurchases during 2012.
Calculate the firm's free cash flow for 2012.
Free Cash FlowFree cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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For a pure equity firm Free cash flow C I d Net dividends d for the year Dividends paid ...View the full answer
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Related Book For 
Financial Statement Analysis and Security Valuation
ISBN: 978-0078025310
5th edition
Authors: Stephen Penman
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