A company generated $220 in free cash flows. It decided to reward its sahreholders with a dividend of $35 million and decided not to have any repurchases or any share issuances. Since it has some debt on its balance sheet, the company incurred $6 million in net interest expense (after tax).

Q6: State the Treasurer's Rule and apply it to this firm's situation. Show all work.

Q7: Does the firm have a SURPLUS or a DEFICIT of Funds? Show all work.

Q8: How would you, as this firm's treasurer, address this SURPLUS (or DEFICIT)? Show all work.