Estimate free cash ?ows by deducting the capital expenditure

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Tempest in a K-Cup: Red Flags on Green Mountain

Question a. Analyze the trend in capital expenditures for ?xed assets by Green Mountain Coffee Roasters for the period 2009 through 2014. Further, ?nd the acquisition-related cash disbursements for the same period.

Question b. Estimate free cash ?ows by deducting the capital expenditures and acquisition related disbursements (computed in (a)) from operating cash ?ows. This is a measure of cash available to reduce debt or distribute to shareholders. Analyze the magnitude and trend in Green Mountain Coffee Roasters' free cash ?ows. Is this of concern to investors? Why or why not?

 

Reference no: EM132652360

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