Answer:
Outsourcing
Explanation:
Outsourcing is a term often used in business relationships that describes a practice in which companies ensures that best candidates are employed for a particular work often contract job, without getting involved in the process of sourcing and appointing internally. It can be used for various operations such as audition works, procurement, planning strategy, etc.
Hence, in this case, the correct answer is OUTSOURCING
The correct definition for free cash flows to the firm is <u>D. EBITX (1-Tax) + Depreciation - Changes in working capital - Capital Expenditure</u>.
<h3>What is free cash flow?</h3>
Free cash flow (FCF) is the cash a company has after all the cash outflows for its operations and capital assets maintenance.
This implies that free cash flow is the available cash that a company has after making payments for its operating expenses and capital expenditures (Capital Expenditure).
A. EBITDAX (1-Tax) + Depreciation - Changes in working capital + Capital Expenditure
B. EBITDAX (1-Tax) - Depreciation - Changes in working capital - Capital Expenditure
C. EBITX (1-Tax) - Depreciation - Changes in working capital + Capital Expenditure
D. EBITX (1-Tax) + Depreciation - Changes in working capital - Capital Expenditure
Thus, the correct definition for free cash flows to the firm is <u>Option D</u>.
Learn more about free cash flows at brainly.com/question/15848997
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Answer: Under economic growth conditions, firms with relatively more financial leverage will have higher expected returns.
Explanation:
Under economic growth conditions, firms and organizations with more financial muscle usually have higher expected returns.
This Growth, is as a result of the change in the company's earnings, revenue, GDP or some other sources over a period of time (usually a year) to the next. This growth are usually not affected by inflation.
Answer:
The statement is true that Preferred stock valuation uses a constant dividend in its valuation while common stock can receive dividends based on fixed growth or dividends based on earnings and not a constant dividend.
The reason is because preferred stock has a guaranteed dividend with a fixed income. This fixed income can, therefore, be expressed as a fixed percentage, thereby making preferred stock a fixed income investment.
Explanation:
A preferred stock because of its fixed-income is similar to a bond. A bond earns a fixed percentage of interest. In the same way, a preferred stock earns a fixed percentage of dividend, though there are many variants under the preferred stock class. It is also like equity stock in that the stockholders participate in profit distribution but lack voting powers unlike common stockholders.
