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Nitella [24]
3 years ago
9

When a firm changes its capital structure by issuing or retiring debt, for example, this change alters the firms unlevered free

cash flow.True / False.
Business
1 answer:
liubo4ka [24]3 years ago
7 0

Answer:

True

Explanation:

Unlevered free cash flows represent the amount of cash a business has before meeting it's financial obligations such as operating expenses or periodic interest payments on borrowed funds.

When a firm issues further debt, it's available funds increase. Similarly, if a firm retires or repays it's debt, it's available funds decrease.

Therefore, change in capital structure by issue or retirement of debt alters a firm's unlevered free cash flows.

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How does Quickbooks online use smart learning?
kvasek [131]

Answer:

Quick Books Online uses smart learning in its reconciliation tool to help find any rogue transactions by recognizing if transactions have been excluded erroneously from bank feeds. Because bank feeds includes all transactions of bank account. What 2 reasons might mean a transaction needs to be excluded in bank feeds?

Explanation:

4 0
2 years ago
Read 2 more answers
Current profit Blank______ and target Blank______ are two strategies used by firms that are pursuing a profit pricing objective.
prohojiy [21]

Current profit maximization and target return are two strategies used by firms that are pursuing a profit pricing objective.

A profit-oriented pricing objective means that a company tried to earn maximum profit with every sale or service provided, and achieve long term business profits.

Current profit maximisation is a price setting objective in which organisation set a price for a product that will give maximum profits, cash flow or return in short term without considering long term.

Target return pricing is a method where the firm determines the price on the basis of a target rate of return on the investment.

The two strategies that a firm use while pursuing a profit pricing objective is current profit maximization and target return pricing.

Learn more about profit pricing objective here

brainly.com/question/15969466

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8 0
2 years ago
Caleb purchased his first home for $420,000. He made a 10% down payment and financed the remaining purchase price. The terms of
Genrish500 [490]

Answer:

In 269th Payment the principal component is greater than half of the payment

Explanation:

Amortization schedule is attached please find it.

The loan payment includes the interest and principal portion. After deducting the interest on the due balance the residual amount is paid towards the principal.  

Loan is paid per month, the amount of each payment can be calculated as follow:

Loan Payment per month = r ( PV ) / 1 - ( 1 + r )^-n

r = rate per period = 9% per year = 0.75% per month

n = number months = 30 years x 12 months per year = 360 Months

PV =  present value of all payments = $420,000

P = payment per month = ?

P = 0.75% ( $420,000 x 90% ) / 1 - ( 1 + 0.75% )^-360

P = $3,041.47 per month

Download xlsx
3 0
3 years ago
A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per
Gnom [1K]

Answer:

c. $3,200 favorable.

Explanation:

We know that

Total controllable cost variance = Budgeted overhead cost - actual overhead cost

where,

Budgeted overhead cost =  Variable overhead + Fixed overhead

where,

Variable overhead = 40,000 units × $2 = $80,000

And, the fixed overhead = $72,000

So, the budgeted overhead = $152,000

And, the actual one is $148,800

So, the total controllable cost variance would be

= $152,000 - $148,800

= $3,200 favorable

7 0
3 years ago
If the number of employed workers equals 200 million and the number of unemployed workers equals 20 million, the unemployment ra
fenix001 [56]

If the number of employed workers equals 200 million and the number of unemployed workers equals 20 million, the unemployment rate equals 9%.

<h3>What is the unemployment rate?</h3>

The unemployment rate is the percentage of the labour force that is unemployed.

The unemployment rate = (number of unemployed people / total labour force) x 100

Total labour force = 200 million + 20 million = 220 million

(20 / 220) x 100 = 9%

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5 0
2 years ago
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