BE13-11 The Management of Russel Inc. is trying to decide whether it can increase its dividend. During the current year, it reported net income of $875,000. It had cash provided by operating activities of $643,000, paid cash dividends of $80,000, and had capital expenditures of $280,000.
Compute the company’s free cash flow, and discuss whether an increase in the dividend appears warranted. What other factors should be considered?
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