Suppose that you have been provided with the following financial information about a company. 2019 2020 Common Shareholders Equity (S/E) 352 323 Cash dividends 50 20 Common share repurchases 0 45 Common share issues 13 60

Which of the following statements about a rules-based versus principles-based approach to setting accounting standards is NOT true? 1. A principles-based approach provides management with the flexibility to exercise judgement 2. A rules-based approach provides a relatively more limited scope for earnings management (EM) activity to occur 3. A rules-based approach provides companies with guidance on how they should they should account for various items and situations 4. A principles-based approach allows management to use accounting policy choice as a means of communication In addition to this information, you have also been informed that the company has net financial obligations (NFO) of 25 in 2019 and 35 in 2020, and net financial expenses of 3 in 2019 and 4 in 2020. Based on this information, what is the companys free cash flow (FCF) for 2020? 1. -39 2. -24 3. -1 4. -30