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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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