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Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow

ID: 2642227 • Letter: P

Question

Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made at the beginning of 2016 are as follows:

(s) millions

2017

2018

2019

2020

2021

Net income

1.0

2.3

3.8

4.3

4.6

Investment

1.0

1.3

1.5

1.7

1.7

Free cash flow

0

1.0

2.3

2.6

2.9

Phoenix

Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made at the beginning of 2016 are as follows:

(s) millions

2017

2018

2019

2020

2021

Net income

1.0

2.3

3.8

4.3

4.6

Investment

1.0

1.3

1.5

1.7

1.7

Free cash flow

0

1.0

2.3

2.6

2.9

Phoenix

Explanation / Answer

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