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Nova Electrics: What is the firm's projected free cash flow for the year 2005?

Nova Electrics anticipated cash flow from operating activities of $6 million in 2005. It will need to spend $1.2 million on capital investments in order to remain competitive within the industry. Common stock dividends are projected at $.4 million and preferred stock dividends at $.55 million.

a. What is the firm's projected free cash flow for the year 2005?

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

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Nova Electrics anticipated cash flow from operating activities of $6 million in 2005. It will need to spend $1.2 million on capital investments in order to remain competitive within the industry. Common stock dividends are projected at $.4 million and ...

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