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Would love some help on this! We're given financial statements from 2009-2013 for Mydeco Corp. a) For each of the years 2010, 2011, 2012 and

Would love some help on this! We're given financial statements from 2009-2013 for Mydeco Corp.

a) For each of the years 2010, 2011, 2012 and 2013, compute the Cash flow from asset (CFA) or free cash flows to the firm (FCFF). Show all supporting computations to earn full credit.

b) For each of the years 2010, 2011, 2012 and 2013, show how the CFA was distributed among various investors. Show all supporting computations to earn full credit.

c) Explain how free cash flows can exacerbate the agency problem between owners and shareholders.

d) State and explain three causes of conflict of interest between bondholders (debtholder or lenders) and the common stockholders (owners).

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2009-2013 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; in $ million) 2009 2010 2011 2012 2013 404.3 363. 8 4 24.6 510.7 604.1 (188.3) (173.8) (206.2) (246.8) (293.4) 216.0 190.0 218.4 263.9 310.7 (66.7) (66.4) (82.8) (102.1) (120.8) (60.6) (59.1) (59.4) (66.4) (78.5) (27.3) (27.0) (34.3) (38.4) (38.6 61.4 37.5 41.9 57.0 72.8 (33.7) (32.9) (32.2) (37.4) (39.4) 27.7 9.7 19.6 33.4 (9.7) (1.6 (3.4) (6.9) (11.7) 18.0 3.0 12.7 21.7 55.0 55.0 55.0 55.0 55.0 $0.33 $0.05 $0.23 $0.39 2009 2010 2011 2012 2013 4.6 $0.11 Mydeco Corp. 2009-2013 Income Statement Revenue Cost of Goods Sold Gross Profit Sales and Marketing Administration Depreciation & Amortization EBIT Interest Income Expense) Pretax Income Income Tax Net Income Shares outstanding (millions) Earnings per share Balance Sheet Assets Cash Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equip. Goodwill & Intangibles Total Assets Liabilities - Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities Long-term Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity 68.9 69.8 48.8 88.6 33.7 171.1 245.3 361.7 778.1 30.9 169.6 243.3 361.7 774.6 86.3 69.8 28.4 184.5 309 361.7 855.2 77.5 76.9 31.7 186.1 345.6 361.7 893.4 85.0 86.1 35.3 206.4 347.0 361.7 915.1 18.7 6.7 25.4 500.0 525.4 252.7 778.1 17.9 6.4 24.3 500.0 524.3 250.3 774.6 22.0 7.0 29.0 575.0 604.0 251.2 855.2 26.8 8.1 34.9 600.0 634.9 258.5 893.4 31.7 9.7 41.4 600.0 641.4 273.7 915.1 Required a) For each of the years 2010, 2011, 2012 and 2013, compute the Cash flow from asset (CFA) or free cash flows to the firm (FCFF). Show all your supporting computations to earn full credit b) For each of the years 2010, 2011, 2012 and 2013, show how the CFA was distributed among various investors. Show all your supporting computations to earn full credit. c) Explain how free cash flows can exacerbate the agency problem between owners and shareholders. d)State and explain THREE causes of conflict of interest between bondholders (debtholder or lenders) and the common stockholders (owners)

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