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Unformatted text preview: ABC has financed its operations with short term debt and with common equity. Dividends for 1996 are $95. ABC borrowed additional short term debt in 1996. They also repurchased $200 of shares in 1996. Free cash flow in 1996 was $25. Required: Based on the information at hand, and the definition(s) of free cash flow developed in class , determine the invested capital balance sheet for ABC for both 1995 and 1996. For each year find trade capital, net fixed assets, short term debt and equity. What was ABCs corporate tax rate in 1996? What was ABCs expenditure for plant property and equipment for 1996 (i.e., capital expenditure)? Find free cash flow for 1996 using the operating definition. Solution...
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This note was uploaded on 02/10/2011 for the course BUS 312 taught by Professor Alan during the Spring '03 term at Simon Fraser.
- Spring '03