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2. The table below lists financial information from the most recent 10K for Cisco Systems. Use this information to answer the questions below. 2005 Value
2. The table below lists financial information from the most recent 10K for Cisco Systems. Use this information to answer the questions below.
2005 Value
EBIT 7,416
Net Income 5,580
Capital Expenditures 4,014
Depreciation 1,009
Acquisition Expenditures 911
Change in Working Capital -420
Tax Rate 29.0%
Debt-to-Capital Ratio 20.6%
A. Calculate the free cash flow to the firm (FCFF) for Cisco in 2005.
B. Calculate the free cash flow to equity (FCFE) for Cisco in 2005
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