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The following information was from the financial statements of Samsung Technology Ltd. for the years 2019 and 2018 (in millions of dollars): Samsung Technology Ltd.

The following information was from the financial statements of Samsung Technology Ltd. for the years 2019 and 2018 (in millions of dollars):

Samsung Technology Ltd.

2018

2019

Cash flow from operating activities

$5,456

$5,968

Cash paid for purchases of property, plant, and equipment

812

755

Property, plant, and equipment, net

6,097

6,091

Dividends paid

300

300

A. Calculate the capital acquisitions ratio for each of the two years. Round your answers to two decimals

places.

B. Calculate the free cash flow for each of the two years.

C. Comment on the sufficiency of the capital acquisitions ratio and free cash flow for the two years and implications for future corporate strategy.

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