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Aleksandr [31]
3 years ago
11

Vasudevan Inc. recently reported operating income of $2.75 million, depreciation of $1.20 million, and had a tax rate of 40%. Th

e firm's expenditures on fixed assets and net operating working capital totaled $0.6 million. How much was its free cash flow, in millions
Business
1 answer:
exis [7]3 years ago
6 0

Answer:

Free cash flow = $2.25 million.

Explanation:

We know,

Free cash flow = Operating income ×( 1 - tax rate) + depreciation - net working capital.

Given,

free cash flow = ?

Operating income = $2.75 million

tax rate = 40%.

depreciation = $1.20 million.

net working capital = $0.6 million.

Putting the values into the formula, we can get

Free cash flow = [Operating income ×( 1 - tax rate) + depreciation - net working capital] million.

Free cash flow = [$2.75 ×( 1 - 40%) + $1.20 - $0.6] million.

Free cash flow = ($2.75 × 0.6 + $1.20 - $0.6) million.

Free cash flow = ($1.65 + $1.20 - $0.6) million.

Free cash flow = ($2.85 - $0.6) million.

Free cash flow = $2.25 million.

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You own 230 shares of stock in Green Mild Chili Peppers, Inc., that currently sell for $50.70 per share. The company has announc
Arturiano [62]

Answer:

This equals $12,256.70 (230 x $50.70 + 230 x $2.59)

Explanation:

The value of the portfolio on May 3 is the sum of the market value of the shares plus the sum of the returns in form of dividends to be received.

This value adds the weight of the investment obtained by multiplying the total shares held with its market price to the expected dividend returns on the given date.

6 0
3 years ago
Read 2 more answers
In 2007, the economy slipped in a recession that many called the worst since the Great Depression. This caused people to experie
Elis [28]

Answer:

an increase in equilibrium price and an indeterminate effect on equilibrium quantity.

Explanation:

An inferior good is a good whose demand increases when income falls and reduces when income rises.

If ramen is an inferior good, when income falls its demand would increase. This would lead to a rise in quantity and price.

An increase in the price of wheat would increase the cost of production of ramen. As a result, the supply of ramen would fall. Price would increase and supply would fall.

The combined effect would be an increase in equilibrium price but an indeterminate effect on equilibrium quantity.

I hope my answer helps you

3 0
3 years ago
Dose scientific management theory ca cause dissatisfaction in the workers?
balu736 [363]
Answer: Yes it does
3 0
3 years ago
What do the europeon union and the world trade organization have in common
JulijaS [17]

The European union and the World trade organization  have trade policy as common.

<u>Explanation: </u>

World Trade Organization (WTO) comprises governments and border control territories that establish, implement, and enforce international trade rules. European Union and the individual EU Member States are members of WTO.

To make sure that rules-based global trade process, the WTO is involved. Despite the deadlock in negotiations, ways are being examined to upgrade WTO rules and tackle new international challenges.

New developments in the WTO trade rules have been brought about by the coming into effect of the Trading Facilitation Agreement in February 2017. Parliament passes legislation in conjunction with the Council under the Treaty of Lisbon and has a major accountability role on global trade policy.

4 0
3 years ago
Assume that the marginal propensity to consume is 0.75, net exports decline by $10 billion, and government spending increases by
kolezko [41]

Answer: $40 billion

Explanation:

The change will be determined by the value of the Multiplier.

The Multiplier shows how much a change in government spending and exports will impart GDP.

Multiplier =  1 / ( 1 - MPC)

= 1 / ( 1 - 0.75)

= 4

Change in GDP = Multiplier * (Government spending + exports)

= 4 * (20 billion -10 billion)

= 4 * 10

= $40 billion

8 0
3 years ago
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