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1.Giglio Inc. has the following information for the previous year: Total operating capital = $1300. The information for the current year is: Net operating profit after taxes (NOPAT) = $900; Total assets = $2,300; and Total operating capital = $1500. What is the free cash flow for the current year? a. $300 b. $400 c. $500 d. $600 e. $700

2. Which of the following is a proper use of free cash flows? a. Pay off some of companys debt. b. Pay dividends to stock holders. c. Acquire operating assets. d. Both A and B e. All of the above

3. Which of the following statements is CORRECT? a. Maximizing EVA is same as maximizing stock price. b. EVA gives us an idea about how much value a firms management has added during the year and it is useful for the one of the criteria of setting compensation. c. EVA gives us an idea about how much value a firms management has added over the firms life. d. All of the above.