If a firm has a negative cash flow from assets every year for several years, the firm: has annual net losses is repaying debt every year. may be continually increasing in size. is operating at a high level of efficiency. must also have a negative cash flow from operations each year. QUESTION 5 ABC company issued $10 mil. in net new equity and $30 mil. new long-term debt last year. During the same year, the company purchased $50 mil in net new fixed assets and incurred $20 mil depreciation expense. The company also paid $30 mil in dividends and $15 mil in interest over the past year while net working capital increased to $12.5 mil. to $15.5 mil. What is the amount of Free Cash Flows? $73 mil. $30 mil. $20 mil. $3 mil. $5mil. MCAP is equivalent to EV+Debt+Preferred Stock+Minority Interests-Cash True False QUESTION 7 Capital invested in private equity funds is committed and locked during the investment period. True False QUESTION 8 EV (Enterprise value) of a firm can be less than its MCAP (market value of equity) True False Depreciation represents noncash expenses charged against revenue that do not affect cash flow. True False QUESTION 10 The average number (annual) of M\&As in the U.S has been roughly: a. 200,000400,000 b. 450,000475,000 c. 2,000-5,000 d. 100,000150,000 e. 10,00030,000