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sweet [91]
3 years ago
13

Free cash flow can be used for various reasons, including distributing it to stockholders and debtholders. Which of the followin

g is not a use of free cash flow?Acquiring operating assetsRetiring debt—that is, to pay off debt
Business
1 answer:
Serggg [28]3 years ago
4 0

Answer:

The correct answer is letter "A": Acquiring operating assets.

Explanation:

Free cash flow refers to the available money a company has after covering all its liabilities and expenses. This money is usually distributed among the firm's investors -stakeholders- and creditors. The Free Cash Flow is not equal to net income because it does not include non-cash expenses but takes into consideration the expenses on company equipment and changes in working capital.

Then, <em>the free cash flow is not destined for acquiring operating assets.</em>

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West Corp. issued 25-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bond
slava [35]

Answer:

4.93%

Explanation:

We use the Rate formula shown in the spreadsheet for this question

The time period is represented in the NPER.

Provided that,  

Present value = $1,000 × 105% = $1,050

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 5.3% ÷ 2 = $26.5

NPER = 25 years - 2 years = 23 years × 2 = 46 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the yield to maturity is 4.93%

6 0
3 years ago
Classifying costs by behavior with changes in volume of activity involves: Multiple Choice Identifying fixed cost and variable c
Vadim26 [7]

Answer:

Identifying fixed cost and variable cost.

Explanation:

  • The behavior cost is those costs that will completely change when there are minute changes in the activity and includes the variable and the fixed costs and the semi-variable costs.  
  • As an example of the fixed cost is the insurance. While the variable cost is flour for the bakery that produces artisan bread. And that of the semi mixed cost is the cost of the bakery cost and the natural gas.
7 0
3 years ago
You are the financial analyst at Sew Mart, an arts and crafts retail store. Your boss has asked you to review the company's fina
mario62 [17]

Answer:

1. It has worsened

2. Yes (refer details below)

3. Refer details below

Explanation:

1. Performance

The performance of the company over the last three years has worsened as indicated by declining sales and decreasing current ratios impacting profitability and liquidity of the company.

2. Concerns

One of the most important concern for the company is its declining sales. It shows that the products are not competitive. Current ratios indicates liquidity crisis since they are decreasing.

3. Recommendations

The company's turnover ratio is high, which may indicates payments are being received timely, and hence the co. should take advantage of that

Low inventory turnover, on the other hand, indicates weaker sales and declining demand for a company’s products which is corroborated by the declining sales trend, the co. must increase its sales, launch new products, advertise aggressively.

8 0
3 years ago
The most fundamental reason for having a safety-friendly corporate culture is competition. true or false
Vlad [161]

True, the most fundamental reason for having a safety-friendly corporate culture is competition.

<h3>What is corporate culture?</h3>

Corporate culture refers to the attitudes and behaviors that govern how employees and management interact in a corporation.  Corporate culture is frequently suggested rather than explicitly stated, and it evolves organically over time from the cumulative attributes of the people the firm hires.  National cultures and customs, economic trends, international trade, company size, and goods all have an impact on corporate culture.

Corporate cultures, whether designed or naturally developed, penetrate to the core of a company's concept and practice, affecting every area of the business. The culture of a firm will be reflected in its dress code, business hours, office layout, and many other aspects of operations.

To learn more about corporate culture, visit:

brainly.com/question/28271127

#SPJ4

8 0
1 year ago
Item 3Item 3 Pension funds are monies put aside by corporations, nonprofit organizations, or unions to fund the financial needs
fredd [130]

Answer:

Pension funds are contribution set aside by employers paid into a Pension Fund Administration (PFA) company for the purpose of retirement.

Explanation:

Pension funds are monies credited into the Individual Retirement Savings (IRS) Account by the employer, with a focus on providing financial comfort to the employees at retirement.

5 0
3 years ago
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