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

question 6

Essay

Use the following information to obtain the ratios below.Round amounts to one decimal place.
$\begin{array}{lr}\text { Net cash flows from operating activities } & \$ 837 \text { million } \\\text { Net income } & 465 \text { million } \\\text { Sales } & 6,750 \text { million }\\\text { Average total assets } & 7,150 \text { million } \\\text { Dividends } & 105 \text { million} \\\text { Purchases of plant assets } & 170 \text { million } \\\text { Sales of plant assets } & 380 \text { million }\end{array}$
a. Cash flow yield = _______________ times
b. Cash flows to sales = _______________ %
c. Cash flows to assets = _______________ %
d. Free cash flow = $ ________________

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Definitions:

Sales Commissions

A compensation method in which sales professionals are paid a percentage of the sales they generate.

Profit-Sharing Plans

A type of incentive plan that gives employees a share in the company’s profits based on its quarterly or annual earnings, promoting a sense of ownership and participation.

Merit-Pay Plans

Pay-for-performance plans where employees receive salary increases or bonuses based on their performance evaluations.

Goal-Sharing Plans

Compensation strategies designed to incentivize employees by sharing financial benefits when specific organizational goals are achieved.