Use Dynastatics' pro forma income statements and balance sheet from problem 32(a) to assess the cash flows
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Use Dynastatics' pro forma income statements and balance sheet from problem 32(a) to assess the cash flows for each forecast year.
b. Start the statement of cash flow with net income. Look at Chapter 3 for the structure of the statement of cash flow.
c. Calculate the cash flow from assets and the financing flow (cash flow to bondholders and shareholders), treating interest as an operating expense. See Chapter 3 for help with this.
d. Calculate the cash flow from assets and the financing flow (cash flow to bondholders and shareholders) treating after-tax interest expense as a cash flow to bondholders.
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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