Answer:
Free cash flow for year 1 = -$1m
Explanation:
Lets first understand what free cash flow is. Free cash flow is the cash generated by a business that is freely available for distribution to all investors after having met all the immediate obligations, investment in non-current assets and investment in working capital. Since it's cash flows we have to add back non-cash items such as depreciation and amortization.
The question is asking for free cash flow for year 1 therefore we take data for the year 1 as follows:
Free cash flow for year 1 = $5m + $2m - $6m - $2m
Free cash flow for year 1 = -$1m
Seems entity has net cash outflows that's why the cash flows are negative.
Answer:
D. Both bonds will decrease in value but bond B will decrease more than bond A.
Explanation:
A given bond is worth the same amount when it matures, so an increase in interest rates means that it must have a lower current value to grow to the same end value.
Comparably, bond B will grow more than bond A throughout its term, so the initial value decreases by more than bond A to compensate.
The above statement is true.
The CEO outlining the new goal of decreasing company costs over the next three years is an example of a strategic goal.
Strategic goals are planned objectives of the that an organization strives to achieve. These goals are set after studying the previous performance of the organization, the market trend, etc. They must be achievable.
Answer: A. Middle management
Explanation:
Middle management is known to be a level of management in an organization which play significant role on the overall success of the organization. Middle managers are those in the position of middle management and are accountable for the employee’s performance, effectiveness and productivity. They are responsible for the happenings in their department and give advice and information in order to resolve problems to the employees below them. Thus, middle managers act on the instructions of the top managers.
