ication) eBook Print Item Free Cash Flow The financial statements for Nike, Inc., are provided in Appendix D. a Determine the free cash flow for the most recent fiscal year. Assume that 90% of the additions to property, plant, and equipment were used to maintain productive capacity. Round to the nearest thousand dollars. X (in millions) b. How might a lender use free cash flow to determine whether or not to give Nike, Inc., a loan? Free cash flow is often used to measure the financial strength of a business. The more free cash flow that a business has, the easier it will be for the company to pay the intertest on the loan and repay the loan principal. G. Would you feel comfortable giving Nike a loan, based on the free cash flow calculated in (a)? Yes .Nike's free cash flow is extremely strong and is well in excess of the capital expenditures necessary to maintain capacity Recall the definition of free cash flow. Is all the property, plant, and equipment used to replace existing capacity? ication) eBook Print Item Free Cash Flow The financial statements for Nike, Inc., are provided in Appendix D. a Determine the free cash flow for the most recent fiscal year. Assume that 90% of the additions to property, plant, and equipment were used to maintain productive capacity. Round to the nearest thousand dollars. X (in millions) b. How might a lender use free cash flow to determine whether or not to give Nike, Inc., a loan? Free cash flow is often used to measure the financial strength of a business. The more free cash flow that a business has, the easier it will be for the company to pay the intertest on the loan and repay the loan principal. G. Would you feel comfortable giving Nike a loan, based on the free cash flow calculated in (a)? Yes .Nike's free cash flow is extremely strong and is well in excess of the capital expenditures necessary to maintain capacity Recall the definition of free cash flow. Is all the property, plant, and equipment used to replace existing capacity