Answer:
True
Explanation:
Unlevered free cash flows represent the amount of cash a business has before meeting it's financial obligations such as operating expenses or periodic interest payments on borrowed funds.
When a firm issues further debt, it's available funds increase. Similarly, if a firm retires or repays it's debt, it's available funds decrease.
Therefore, change in capital structure by issue or retirement of debt alters a firm's unlevered free cash flows.
Answer:
c. Repayment of long-term borrowing to the bank.
Explanation:
The third section of the statement of cash flows shows the cash flows from financing activities.
These activities are defined as ‘activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.’ It measures the flow of cash between a firm and its owners and creditors. Companies often borrow money to fund their operations, acquire another company or make other major purchases. Here again for investors, the most important item is cash dividends paid.
Based on the above discussion, the following item shall be included in the financing cash flows.
c. Repayment of long-term borrowing to the bank.
Answer:
Company ABC and Emily, a single filing taxpayer
The maximum amount excludable from Emily's gross income for the dependent care expenses, which Emily can report on her tax return is $3,000.
Explanation:
a) Data and Calculations for Emily:
Dependent care flexible spending arrangement deduction = $4,500
Fair market value of the on-site dependent care used = $700
Form W-2 reported dependent care assistance = $5,200
Maximum amount excludable from Emily's gross income for the dependent care expenses Emily can report on her tax return is $3,000.
b) According to the IRS records, Emily can exclude or deduct dependent care benefits provided by a dependent care benefit plan, an amount not exceeding $3,000 if one qualifying person was cared for or $6,000 if two or more qualifying persons were cared for. Since the number of persons cared for is not disclosed, it is assumed that Emily cared for only one qualifying person. Therefore, $3,000 is the maximum she is allowed to deduct.
Answer: True
Explanation:
He is planning to use the retained earnings that are the result of the net profit plus the accumulated of the previous year, this with the purpose of not paying interest for the financing of his investment, another way of making an investment and not generating interest is that they are obtained a new financing of capital by the shareholders, which will be capitalized to equity and will not require the payment of interest only from dividends according to the parties but definitely, the only way that an interest or a portion to be paid by part is not generated of investment is what.
Answer:
One approach is to use the simple equation Value = Benefits / Cost. The plus side to this approach is that it is concrete and quantifiable. You can measure the profit consistently throughout the life of the product, charting changes in value over time.
