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
Seller Dayne was made aware by the trustee that the lender was wanting to proceed with foreclosure on his property. What type of
elena55 [62]

Answer:

Promissory agreement and Deed of trust.

Explanation:

In this scenario, Seller Dayne was made aware by the trustee that the lender was wanting to proceed with foreclosure on his property. The type of financial agreement that Seller Dayne have with this lender is a Promissory agreement and Deed of trust.

A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.

On the other hand, a deed of trust can be defined as a legal document used by a party (borrower) to pledge his or her property to another party (lender) as guarantee or collateral for the repayment of a loan. The deed of trust is typically made up of three (3) parties; the lender, borrower and a trustee.

Additionally, a foreclosure on a property refers to a legal procedure whereby the property being pledged by a borrower for a debt is sold to pay off the debt as a result of defaulting in payments or terms with respect to a loan.

6 0
3 years ago
1. To gain profit and earn a living.​
liraira [26]

Answer:

what is your question though? I don't understand

8 0
3 years ago
Read 2 more answers
How can you best uncover challenges and constraints that employees deal with in their daily work.
Westkost [7]

Answer:

Assumptions and expectations are the root causes of workplace constraints.

Explanation:

To avoid workplace conflicts one needs detailed information and clarity. If we train ourselves to think in a positive way and act without anger will do wonders. Our conduct in a situation is going to be really different if we take some time to look at good intentions instead of immediately reacting. It's much more productive to turn a bunch of assumptions into a shared understanding of the information.

8 0
3 years ago
Martinez Furniture Company started construction of a combination office and warehouse building for its own use at an estimated c
baherus [9]

Answer:

$530,672

Explanation:

Base on the scenario been described in the question, we can use the following method to compute the avoidable interest on this project

Use the attached file below to find the solution to given problem .

3 0
3 years ago
On the first day of the fiscal year, a company issues an $7,500,000, 8%, five-year bond that pays semiannual interest of $300,00
Sav [38]

Answer:

$7,500,000 in 8% bonds, 5 years to maturity, semiannual coupon ($300,000)

sold at premium for $7,740,000

the journal entry to record the issuance should be:

Dr Cash 7,740,000

    Cr Bonds payable 7,500,000

    Cr Bond premium 240,000

<u>Using the straight line amortization:</u>

amortization per coupon payment = $240,000 / 10 coupons = $24,000

Dr Interest expense 276,000

Dr Bond premium 24,000

    Cr Cash 300,000

5 0
3 years ago
Other questions:
  • A bussiness reports profits when ___ are greater than___.
    8·1 answer
  • When you're evaluating the risk of starting a new business, which risk is likely to be worth it? Question 17 options: Losing you
    13·1 answer
  • Which of the following is not true regarding the use of simulation in multinational capital budgeting? a. It can be used to gene
    10·1 answer
  • The​ risk-free rate is 3.4​% and you believe that the​ S&amp;P 500's excess return will be 11.9​% over the next year. If you inv
    5·1 answer
  • Katrina receives an offer to buy a box of candy through the mail each month. The letter says that she will begin receiving candy
    8·1 answer
  • You have been instructed to place an order for a client to purchase 500 shares of every IPO that comes to market. The next two I
    14·1 answer
  • You find that the bid and ask prices for a stock are $12.65 and $13.40, respectively. If you purchase or sell the stock, you mus
    7·1 answer
  • Describe two differences between Locke's and Maslow's theory of motivation..
    13·1 answer
  • 65 employees have earned two weeks of vacation time to be taken the following year. If the average weekly salary for these emplo
    9·1 answer
  • Suppose there were several large outstanding checks on the year-end bank reconciliation that did not clear the bank by the cutof
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!