During Year 2,the operations of a shipping company provided net cash flows of $600,000.The company made capital expenditures of $270,000 and paid dividends of $130,000.
A) Compute the company's free cash flow.
B) Compute the compary's cash flow adequacy ratio assuming the average maturity value of its long-term debt over the next five years is .
Correct Answer:
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B)
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