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
Nastasia [14]
3 years ago
10

Nova Electrics anticipates cash flow from operating activities of $13 million in 20X1. It will need to spend $8.5 million on cap

ital investments to remain competitive within the industry. Common stock dividends are projected at $1.10 million and preferred stock dividends at $1.30 million.a. What is the firm’s projected free cash flow for the year 20X1? (Enter your answer in millions of dollars rounded to 2 decimal places.)b. What does the concept of free cash flow represent? A. Free cash flow equals cash flow from operating activities.B. Free cash flow represents the funds that are available for investing activities, such as purchasing plant and equipment assets.C. Free cash flow represents the funds that are available for special financing activities, such as a leveraged buyout.
Business
1 answer:
Maslowich3 years ago
8 0

Answer:

a.  $2.1 million

A. Free cash flow equals cash flow from operating activities.B. Free cash flow represents the funds that are available for investing activities, such as purchasing plant and equipment assets

Explanation:

a. The computation of the free cash flow is shown below:

= Cash flow from operating activities - capital investments - projected common stock dividend - preferred stock dividend

= $13 million - $8.5 million - $1.10 million - $1.30 million

= $2.1 million

b. The normal formula to compute the free cash flow is shown below:

= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure.

This formula indicates the operating activities and the investing activities so option a and option b is taken together

You might be interested in
Would you rather ride in an airplane or drive in a car? Compare those risks?
gogolik [260]
I would fly a plane because there is like 1 in a million chance of crashing and in a car you could crash every time you see someone driving !! i need points!!

4 0
3 years ago
Financial markets and _______ channel _______ to_______ . They also channel money from individuals who want to _______ for the f
garik1379 [7]

Answer:

Financial intermediaries; savings; real investments; save; mutual funds; ETFs; commodity markets; shares; liquid; stock market; banks; CFO; bonds

Explanation:

Financial markets and FINANCIAL INTERMEDIARIES channel SAVINGS to REAL INVESTMENTS . They also channel money from individuals who want to SAVE for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example, MUTUAL FUNDS, such as the Vanguard Index fund, and ETF( educational trust funds) , such as SPDR's or "spiders," allow individuals to spread their risk across a large number of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the COMMODITY MARKETS to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the SHARES of public companies are LIQUID because they are traded in huge volumes on the STOCK MARKET .

BANKS are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the CFO of a company that is contemplating an issue of debt can look at the yields on existing BONDS to gauge how much interest the company will need to pay.

7 0
3 years ago
How do (inter) governmental organisations, such as the International Energy Agency, project energy use and carbon emissions for
Ainat [17]

The International Energy Agency provides insights into energy use and carbon emissions for the future in the form of exploring different scenarios, which are not actual projections.

<h3 /><h3>What are the goals of the IEA?</h3>

The agency aims to disseminate information and support global efforts to transition from clean and renewable energy use, in order to reduce the impacts of non-renewable energy on the environment and climate.

Therefore, the IEA uses an approach to identify future trends on the sustainable energy transition, and is not really a tool for forecasting the future of global energy.

Find out more about renewable energy here:

brainly.com/question/2333811

#SPJ1

5 0
2 years ago
Mr. Rational has $27 that he plans to spend purchasing 5 units of good X (priced at $3 per unit) and 6 units of good Y (priced a
allsm [11]

Answer:

Option A, buy less of X and more of Y is correct.

Explanation:

The amount that Mr. Rational is going to spend = $27

Quantity of good X = 5 units

Price of good X (Px) = $3 per unit

Marginal utility of 5th unit of X (MUx) = 30

Quantity of good Y = 6 units

Price of good Y (Py) = $2 per unit

Marginal utility of 6th unit of Y (MUy) = 18

Now \ find \  \frac{MUx}{Px} = \frac{30}{3} = 10 \\

Now \  \frac{MUy}{Py} = \frac{18}{2} = 9

Since \ the  \ \frac{MUx}{Px} is \ greater \ than \  \frac{MUy}{Py}.

So good x will be substituted for y in order to reach the consumer equilibrium.

\frac{MUx}{Px} =  \frac{MUy}{Py}

Thus, Option a. buy less of X and more of Y is correct.

4 0
3 years ago
A $25,000 bank loan is to be repaid in equal yearly payment over 15 years at an effective annual interest rate of 7%. you did th
Anon25 [30]
¿ʇuǝɯʎɐd ɥʇ8 ɹnoʎ ǝpɐɯ noʎ ɹǝʇɟɐ ןɐdıɔuıɹd pıɐdun ǝɥʇ sı ʇɐɥʍ ˙5472$ sı ʇuǝɯʎɐd ןɐnuuɐ ɹnoʎ ʇɐɥʇ punoɟ puɐ uoıʇɐןnɔןɐɔ ǝɥʇ pıp noʎ ˙%7 ɟo ǝʇɐɹ ʇsǝɹǝʇuı ןɐnuuɐ ǝʌıʇɔǝɟɟǝ uɐ ʇɐ sɹɐǝʎ 51 ɹǝʌo ʇuǝɯʎɐd ʎןɹɐǝʎ ןɐnbǝ uı pıɐdǝɹ ǝq oʇ sı uɐoן ʞuɐq 000'52$ ɐ
8 0
4 years ago
Other questions:
  • What is the term that describes what a business has to pay to correct defective products?
    5·2 answers
  • Horace is trying to start a business. He knows several accredited investors who he knows will help him jumpstart his business. W
    9·1 answer
  • The matching principle, as applied to bad debts, requires:
    14·1 answer
  • Eastman Kodak reported that the cost of its PPE on December 31, 2010 was $6,805 million. On January 1, 2010, it had been $7,327
    8·1 answer
  • Sydney has worked for WillCo for the last 20 years. She just had her 60th birthday and is thinking about retirement. WillCo spon
    7·1 answer
  • The country of Lessidinia has a tax system identical to that of the United States. Suppose someone in Lessidinia bought a parcel
    6·1 answer
  • Which of the following is not considered cash for financial reporting purposes?
    12·2 answers
  • A job specification is: a. a group of related activities and duties. b. a statement of the knowledge, skills, and abilities requ
    10·1 answer
  • What are some of the strategies that you currently use to make consumer
    15·2 answers
  • Joplin Industries Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!