Answer:
145 millons free cash flow for the year
Explanation:
100 operating income
+ 15 depreciation (this expense do not involve cash, so they add up cash)
+50 long term asset sales (more cash in form of currency)
-10 capital expenditure (cash used purchase, mantaing or improve their assets)
-10 investment in working capital (we use it to adquire assets or pay liabilities)
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145 millons free cash flow for the year
The face value per share.
Answer:
A. benchmarking
Explanation:
In companies; benchmarking is the good practice as it compares the company's business processes and performance metrics to industry. There are four types of benchmarking which are internal, competitive, functional and generic. Benchmarking always facilitate to seek the best practices of your competitor and learn it to implement or take strategic decisions. Based on the data and information which is derived from benchmarking; company can modified its strategies towards the achievement of objective to excel among competitors.
Answer
- A) Capital budgeting
- B) Capital Structure
- C) working capital management
Explanation:
- Capital Budgeting: The new product requires investments, therefore businesses are more likely to evaluate the decision of preceding it. So, in brief, it's a method used by companies to assess if a new product should be introduced or not.
<em>Since</em> the company has opted to launch the new product, it has made a capital budgeting decision. In which the company has assessed the risks, benefits and costs associated with the product.
Capital Structure: As the name reflects, businesses have a structure which is a mix of debt + equity to finance the company. Company obliges to identify that where it's investment would come from by assessing its capital after the new product decision is made.
<em>Hence,</em> when company sells it's stock, it is basically creating an investment for its new product.
Working capital management: A process through which companies ensure efficient and effective operations by assessing and managing their working capital. Working capital includes current assets (highly liquid assets) and liabilities.
<em>Therefore,</em> when the company sets its inventory and production levels, it is trying to make its production efficient and effective with sufficient inventory at hand.
