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oee [108]
1 year ago
14

how do free cash flows available for debt and equity stakeholders differ from free cash flows available for common equity shareh

olders?
Business
1 answer:
Alik [6]1 year ago
4 0

The value of free cash flows for common due to the fact that they are made up of funds available for distribution to shareholders as dividends. Alternatively, this is Distributable Cash.

Financing operations are excluded from the calculation of free cash flows to common equity owners if: the capital expenditures adjustments .Investors and business analysts value free cash flow because it indicates how much available cash your organisation has. They frequently evaluate your free cash flow to determine whether your business has the money to pay down debt, distribute dividends, and repurchase shares.Because it affects a company’s capacity to generate cash from operations, a company’s net income has a significant impact on its free cash flow.After all required capital investments and distributions to shareholders have been made, the remaining cash flow is known as free cash flow.Cash flow from operations less capital outlays is known as free cash flow to equity.The maximum amount that may be distributed to shareholders as a dividend is represented by FCFE.

To know more about Cash Flow visit:

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Stock R has a beta of 2.5, Stock S has a beta of 0.55, the required return on an average stock is 13%, and the risk-free rate of
avanturin [10]

Answer:

19.50%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For Stock R

= 3% + 2.5 × (13% - 3%)

= 3% + 2.5 × 10%

= 3% + 25%

= 28.00%

For Stock S

= 3% + 0.55 × (13% - 3%)

= 3% + 0.55 × 10%

= 3% + 5.5%

= 8.50%

The difference would be

= 28% - 8.5%

= 19.50%

3 0
3 years ago
Based on the key assumptions of financial reporting, which of the following should be excluded from financial reports? A : items
schepotkina [342]

Answer:

Customer satisfaction and complaint reports should be excluded from financial reports.

Explanation:

Customer satisfaction and complaints report is a marketing report, it determines how the products and services provided by a company meet or exceed customer expectations. Customer expectitions are not the same for each customer, and can't be measured and registered in a financial report.

Financial reports are those comply certain assumptions such as:

Accrual assumption.

Consistency assumption.

Economic entity assumption.

Reliability assumption.

Time period assumption.

Among others.

6 0
3 years ago
Tomatoes are an input in the production of ketchup, and ketchup and mustard are substitutes. an increase in the price of tomatoe
denpristay [2]
Tomatoes are an input in the production of ketchup, and ketchup and mustard are substitutes. An increase in the price of tomatoes will LOWER the total surplus in the market for mustard
3 0
3 years ago
How does payroll withholding help a company's employees? (1-2 sentences. 2.0 points)
Rudiy27

Answer:

It helps them to get their money without attending to their work places

6 0
3 years ago
The ideal marketing objective is ________. idealistic, quantifiable, and consumer-oriented situational, unattainable, and intern
GuDViN [60]

Answer:

The correct answer is: Time specific, realistic and quantifiable.

Explanation:

To begin with, a good marketing campaign must follow certain objectives in order to be fully successfull or at least as high as possible. Therefore that the best objectives to look for regarding marketing expertises are the facts that the objectives are <em>realistic</em>, so that means that it can be possible done by the budget of the company; <em>quantifiable</em>, so that means that the company can measure the benefits of using the campaign and see that the costs were worthy; and finally,<em> </em><em>time specific objectives</em>, so that means that the company can know if their goals are being accomplished in the time expected.

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3 years ago
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