Use the Following Information to Obtain the Ratios Below A Cash Flow Yield = _______________ Times
B

question 106

Essay

Use the following information to obtain the ratios below.Round amounts to one decimal place.
$\begin{array}{ll}\text { Net cash flows from operating activities } & \$ 837 \text { million } \\\text { Net income } & 465 \text { million } \\\text { Sales } & 6,750 \text { million}\\\text { Average total assets } & 7,150 \text { million } \\\text { Dividends } & 105 \text { million } \\\text { Purchases of plant assets } & 170 \text { million } \\\text { Sales of plant assets } & 380 \text { million }\end{array}$

a. Cash flow yield = _______________ times
b. Cash flows to sales = _______________ %
c. Cash flows to assets = _______________ %
d. Free cash flow = $ ________________

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Definitions:

Economic Profit

The variance between gross receipts and all outlays, including both tangible and intangible costs.

Accounting Profit

The total revenue of a business minus the explicit costs of operating, not including opportunity costs.

Implicit Costs

The opportunity costs that are not directly paid out but represent the loss of potential income from using resources in a certain way.

Opportunity Costs

Missing out on possible advantages from other choices by opting for a particular alternative.