166 million cash dividends

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Unformatted text preview: ............ $166 million – Cash dividends ............................................................................................................. 65 million – Increase in plant and equipment................................................................................... 50 million Excess funds.................................................................................................................... $ 51 million The firm could not only cover the dividends, but use the excess funds (a term roughly the equivalent to free cash flow) to almost double the dividend. The problem was that Robert Osborne had used these funds and part of a high beginning cash balance to reduce $120 million of long-term debt that was not due until 2019 (see financing activities under statement of cash flows)....
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This note was uploaded on 12/21/2012 for the course FINC 309 taught by Professor Bunker during the Spring '12 term at Westminster UT.

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