The following information is for a firm that has net debt on its balance sheet (in millions

Question:

The following information is for a firm that has net debt on its balance sheet (in millions of dollars).

Common shareholders' equity, December 3 1, 2011 ...................... 174.8

Common dividends, paid December 2012 ............................................ 8.3

Issue of common shares, December 2012 .......................................... 34.4

Common shareholders' equity, December 31, 2012 ........................ 226.2

Net debt, December 31, 2011 ............................................................... 54.3

Net debt, December 3 1, 2012 .............................................................. 37.4

There were no share repurchases during 2012. The firm reported net interest after tax of $4 million on its income statement for 2012, and this interest was paid in cash.

Calculate the firm's free cash flow for 2012.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...