Question 1. A firm generated free cash flow of 2348 million and paid net interest of 23 million after tax. It paid a dividend of 14$ million and issued shares for 54 million. There were no share repurchases. What did the treasurer do with the remaining cash flow and for how much?
Question 2. A firm generated a negative free cash flow of 1857 million, but the board of directors understanding that the firm was quite profitable maintained the dividend of $1.25 per share on the 840 million shares outstanding. The firm also paid 32 million in net interest (after tax). What are the responses open to the treasurer?