Answer:
$43 million
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. Depreciation and other non-cash expenses deducted in the income statements are added back while the non-cash income such gain on asset are deducted from net income.
Peridot's Net cash outflows from investing activities (in millions)
= -$38 + $96 + $71 - $86
= $43
The gain from the disposal of land will be deducted from the net income under the cash flows from operating activities while the requisition of own shares is a financing activity.
Answer:
The portfolio with a beta of 1.38 should earn the most risk premium based on CAPM.
The correct answer is B
Explanation:
A diversified portfolio with returns similar to the overall market will not earn the most risk premium because its beta is equal to 1.
A stock with a beta of 1.38 produces the most risk premium because any stock with the highest beta gives the highest risk-premium. This is the correct answer.
A stock with a beta of 0.74 does not provide the highest risk premium.
Us treasury bill does not provide any risk premium since it is the risk-free rate.
A portfolio with a beta of 1.01 does not produce the highest risk premium.
Answer:
Adaptation of industrial products is the correct answer.
Explanation:
Answer:
$10,534
Explanation:
Net purchases before discount = $11,600 - $2,080 = $9,520
Since the company paid before 10 days, it takes 3% discount as follows:
Discount = $9,520 * 3% = 9,234.40 = $285.60
Net purchases after discount = $9,520 - $285.60 = $9,234.40
The company pays for the freight charge of $1,300 and net purchases after discount. Therefore, we have:
Cash paid = $9,234.40 + $1,300 = $10,534.40, or $10,534 approximately.
If this is a true or false statement, then true.
