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igomit [66]
3 years ago
14

Blur Corp. has an expected net operating profit after taxes, EBIT(1 – T), of $7,600 million in the coming year. In addition, the

firm is expected to have net capital expenditures of $1,140 million, and net operating working capital (NOWC) is expected to increase by $10 million. How much free cash flow (FCF) is Blur Corp. expected to generate over the next year?
Business
2 answers:
Marizza181 [45]3 years ago
8 0

Answer:

$6,450,000

Explanation:

Free cash flow (FCF) can be defined as the money or cash that remained after the company might have pay for its operating expenses as well as capital expenditures which is why companies, organisation, business owner or individual make use of FREE CASH FLOW to understand the profitability of their business.

Blur Corp

FCF = NOPAT – Net investment in operating capital

= $7,600M – (1,140+10)

= $7,600M - $1,150

=$6,450,000

Therefore Blur Corp is expected to generate free cash flow (FCF) of $6,450,000 over the next year.

Zina [86]3 years ago
6 0

Answer:

Free cash flow (FCF) for next year = $ 6,450  million

Explanation:

<em>Free cash flow represents the amount that is left to all the providers of capital after the payment of all all operating expenses, working capital and investment in fixed asset expenditures.</em>

<em>It is computed as cash flow made from operation less capital expenditures</em>

For Blur Communications

The Free cash flow

= EBIT (1-T) - increase in capital expenditure - increase in working capital

= 7600 - $1,140 - 10

= $ 6,450  million

Free cash flow (FCF) for next year = $ 6,450  million

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Which of the following could be the price elasticity of demand for a good for which an increase in price would increase total re
Artemon [7]

Answer:

a. 0.3

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is inelastic if a change in price has little or no effect on quantity demanded.

If price is increased, the quantity demanded doesn't change and total revenue increases.

The coefficient of elasticity for inelastic demand is usually less than one.

Demand is elastic if a small change in price leads to a greater change in quantity demanded. The coefficient of elasticity for elastic demand is usually greater than 1. If price is increased, the quantity demanded falls and total revenue falls.

Demand in unitary elastic if a change in price has the same proportional effect on quantity demanded. The coefficient of elasticity for unitary demand is 1.

I hope my answer helps you

6 0
3 years ago
A severe cyclone causes substantial damage to a brick manufacturing company's production equipment. As a result, the company spe
Zepler [3.9K]

Answer:

The correct answer is D. indirect cost.

Explanation:

That is, indirect costs are those costs that the company incurs during the exercise of its activity, whose allocation is more complicated, since they are not directly related to production.

In the above case, it is shown that the environmental effect produced by the cyclone is not directly related to the production of the bricks, so it is considered that it corresponds to indirect costs of the operation.

6 0
3 years ago
Suppose you buy a 7 percent coupon, 20-year bond today when it’s first issued. If interest rates suddenly rise to 15 percent, wh
Mariana [72]

Answer: The value of the bond will decrease

Explanation:

The Interest rate has a negative inverse relationship with the value of a bond . When the interest rate increases the value of a bond decreases and when interest rate decreases  the bond value increases. Bonds with low coupon rates tend to be more sensitive to interest rate changes this is known has coupon effect.

Bonds with long time frame (long term bonds), they also  tend to be are more sensitive to changes in the interest rate this is known has the maturity effect.  Therefore a change in the interest rate will cause a huge change in the value of a Bond with low coupon rate and long time period.

The Bond is a 20 year Bonds which qualifies it to be a long term bond and the coupon Rate is 7%, with these facts and knowing that  long term bonds are more sensitive to interest rate changes we can conclude that the sudden increase of the interest rate to 15%  will cause a huge decrease in the value of the bond

5 0
3 years ago
Which of the following are the characteristics of a competitive market? (Check all that apply.)
kakasveta [241]

A competitive market refers to a market where there is no monopoly of producers of goods and services, therefore, competition is high because they all have mission to satisfy the wants of a large consumers.

The characteristics of a competitive market are:

  • Homogeneity of product: The product are made by different producers and encourages competition.
  • There are existence of many buyers and sellers in the market.
  • There is an access to derive perfect information on price of a product at any outlet in the market.
  • There are no charges for transaction costs in a competitive market
  • No barriers to entry into or exit.

In conclusion, there is no producers which can affect the market price through its supplying rate because there are excess supply of similar product in the market.

Learn more about competitive market here

<em>brainly.com/question/7024827</em>

5 0
2 years ago
Negative externalities are created when
katrin2010 [14]

Answer:

The correct answer is (C)

Explanation:

Negative externalities occur when an individual or firm making a choice negatively affect other parties.  A driver who recklessly drives a car on a busy highway is a negative externality because the amusement of the driver is negatively affecting other people. A negative externality arises when the benefit of a decision is less than the negative outcomes of that decision.

3 0
3 years ago
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