Answer:
Free cash flow to the firm = $326,000
Explanation:
The free cash flow to the firm can be computed using the following formula:
Free cash flow to the firm = Cash flow from operating activities + (Interest paid * (100% - Tax rate)) - Net capital expenditures ............... (1)
Where:
Cash flow from operating activities = $600,000
Interest paid = $40,000
Tax rate = 35%
Net capital expenditures = $300,000
Substituting the values into equation (1), we have:
Free cash flow to the firm = $600,000 + ($40,000 * (100% - 35%)) - $300,000 = $326,000
Answer:
False
Explanation:
It is FALSE that If you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, this is consistent with the weak form of EMH.
Weak Form of Efficiency Market Hypothesis states that individuals cannot use past knowledge, facts, or occurrence about stock to determine its future price.
In other words, past data or evidence has no connection with existing market prices.
Hence, if you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, that shows the existence of pattern or past information about the stock rising or falling prices determine future occurrence. This situation contradicts the Weak form of EMH
Answer:
The correct answer is B.
Explanation:
The FASAB (Federal Accounting Standard Advisory Board) is a commitee that develops accounting standards for U.S government agencies, not for not profit entities, for all governmental entities or non-federal governmental entities.
The correct option is (d).
- Choosing the best mutual funds by comparing performance of mutual funds against a benchmark index.
- Money market funds, bond funds, stock funds, and target date funds are the four primary categories into which most mutual funds fit.
- Each variety has unique characteristics, dangers, and benefits.
- The rate of return is subtracted from the risk-free rate of return for the investment, and the result is divided by the return on investment's standard deviation.
- The Sharpe ratio tells investors if an investment's results are the result of prudent investing decisions or an outcome with excessive risk.
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