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What does the concept of free cash flow represent

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Reference no: EM132983871

Coastal Pipeline, Inc., anticipated cash flow from operating activities of $8 million in 2010. It will need to spend $1.5 million on capital investments in order to remain competitive within the industry. Common stock dividends are projected at $.6 million and preferred stock dividends at $.25 million.

Problem a. What is the firm's projected free cash flow for the year 2010?

Problem b. What does the concept of free cash flow represent?

Reference no: EM132983871

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