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Required a . Why does Verizon add back depreciation to compute net cash flows from operating activities? What does the size of the depreciation add
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a Why does Verizon add back depreciation to compute net cash flows from operating activities? What does the size of the depreciation addback indicate about the relative capital intensity of this industry?
b Verizon reports that it invested $ million in property and equipment. These expenditures are necessitated by market pressures as the company faces stiff competition from other communications companies, such as Comcast. Where in the might we find additional information about these capital expenditures to ascertain whether Verizon is addressing the company's most pressing needs? What relation might we expect between the size of these capital expenditures and the amount of depreciation expense reported?
c Determine the net cash flow associated with debt in Verizon's balance sheet reveals that the company has $ million of debt at yearend. What problem does Verizon's high debt
load pose for its ability to maintain the level of capital expenditures necessary to remain competitive in its industry?
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