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Question: Inferences Using Accounting Relations (Hard) A firm with no financial assets or financial obligations generated free cash flow of $8.4 million in 2009. At the end of 2008 it had a market value of $224 million, or 1.6 times book value. At the end of 2009 it had a market value of $238 million, twice book value.

a. What was the rate of return from investing in the stock of this firm for 2009?

b. What were the earnings for this firm for 2009?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92299528

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