1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nika2105 [10]
3 years ago
8

The free cash flow hypothesis supports A. decreasing stockholder dividends to retain more cash within the firm. B. reducing a fi

rm's level of debt to reduce the amount of cash used to pay interest. C. increasing the debt portion of a firm's capital structure to increase firm value. D. hiring managers with little or no stock ownership in the firm. E. the idea that firms with high levels of free cash flow are more apt to make good acquisitions than firms with low levels. Reset Selection\
Business
1 answer:
Luden [163]3 years ago
5 0

Answer:

The correct answer is C

Explanation:

Free cash flow hypothesis is the one which is defined as the increase in the cash flow, which the agency costs of the firms or business with the opportunities of the poor investment. The management which exhausted the positive projects of NPV (Net Present Value), it proceeds in order to invest in negative NPV projects instead paying out the funds to the shareholders.

So, this hypothesis supports, in increasing or rising the portion of debt of the capital structure of the firm so that could increase the value of the firm.

You might be interested in
HELP ASAP NEED THIS
KonstantinChe [14]

Answer:

Shirly would be suitable for the following races; law, public safety and security.

Explanation:

the careers of law, public safety and security, are those that describe the characteristics that Shirly presented in his evaluation, since they reflect the qualities of justice, security and good physical condition to face risk situations, and that all of them They are aimed at the common good of the people around them.

7 0
3 years ago
Read 2 more answers
You are considering a project with an initial cost of $4,600. What is the payback period for this project if the cash inflows ar
klio [65]
The correct answer is C, 2.89 years
3 0
3 years ago
Find the amount to which $550 will grow under each of the following conditions. Do not round intermediate calculations. Round yo
Cloud [144]

Answer:

(A)Fv= $864.2

(B) Fv= $1302.05

(C) Fv=  $2003.4

(D) Fv= $96817.21

Explanation:

Giving the following information:

Initial investment= $550

We will use the final value formula:

FV=Present value*(1+i)^n

(A) 9% compounded annually for 5 years.

Fv= 550*(1.09)^5=$864.2

(B) 9% compounded semiannually for 5 years.

Fv= 550*(1.09)^10= $1302.05

(C) 9% compounded quarterly for 5 years.

Fv= 550*(1.09)^15= $2003.4

(D) 9% compounded monthly for 5 years.

Fv= 550*(1.09)^60=$96817.21

6 0
3 years ago
Once a business owner proves that a franchise is successful, his or her franchise will automatically be renewed True or False?
Usimov [2.4K]
The answer is False:)
5 0
3 years ago
Read 2 more answers
Use the drop-down menus to identify the career cluster that fits each job description.
shutvik [7]

Answer:

Mel is a Computer User Support Specialist who helps people who are having difficulty using computers: information technology

Isa is an Engine Assembler who puts together car engines: manufacturing

Annette is a Judge in a local court system: law , public saftey and security

Explanation:

5 0
3 years ago
Read 2 more answers
Other questions:
  • A seller netted $55,000 at closing. if the seller paid costs of $1000 and an 8.5% commission, what was the sale price to the nea
    10·1 answer
  • The so-called "daisy spot" created by tony schwartz in 1964 was considered a success because it played a major role in a politic
    7·1 answer
  • A firm facing a price of $15 in a perfectly competitive market decides to produce 100 widgets. If its marginal cost of producing
    13·1 answer
  • Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.)
    12·1 answer
  • Robert needs his daily fix of coffee in the mid-afternoon and visits different coffee shops that will give him as much utility a
    7·1 answer
  • The following transactions are July activities of Craig's Bowling, Inc
    10·1 answer
  • Activities provide experience in time management. an example of a time-management task might be _____.. creating a web page prio
    14·2 answers
  • What type of portfolio might a young investor who is not afraid of risk choose?
    11·1 answer
  • For a given set of underlying real estate properties, the type of real estate index that is most likely to have the lowest stand
    7·1 answer
  • Need answer ASAP if in next 5mins I'll name first answer brainliest
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!