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marshall27 [118]
3 years ago
11

Free cash flows are a. dividends that have been distributed to shareholders that are taxed as capital gains. b. liquid financial

assets for which investments in current businesses are no longer economically viable. c. the profits resulting after a restructured firm has been sold. d. liquid financial assets that for tax purposes must be reinvested in the firm if not distributed as dividends to shareholders.
Business
1 answer:
ch4aika [34]3 years ago
3 0

Answer:

The correct answer is d. liquid financial assets that for tax purposes must be reinvested in the firm if not distributed as dividends to shareholders.

Explanation:

One of the variables that best measure a company's financial capacity is free cash flow (FCF). It consists of the amount of money available to cover debt or distribute dividends, once payment to suppliers and purchases of fixed assets (construction, machinery ...) have been deducted.

In general, this calculation serves to measure the ability of a business to generate cash regardless of its financial structure. That is, the FCF is the cash flow generated by the company that is available to meet payments to its financing providers.

In short, the FCF is the balance of treasury that is free in the company, that is, the money available once the mandatory payments have been met. Normally, the FCF is used to remunerate shareholders via dividends or to amortize the principal of the debt and meet interest.

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Without the consumer, what would the overall effect be on the economy?
choli [55]

Answer:

Consumers are basis for any economy to work out.It is the consumers for which the country works and makes sure to fulfil the demand of the market. New businesses come into existence because they create needs in the consumers and fulfil those needs. These businesses become a part of the economy and therefore give an input.

If there are no consumers, there will be o demands and the produces will have no needs or demands to fulfil which would lead to less production and therefore leading towards the fall of the economy.

7 0
3 years ago
Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing
iVinArrow [24]

Answer:

$120

Explanation:

Given:

• Geometric growth rate of existing financial security:

$4 to $8 to $16 to $32 to $64 to $128

• Arithmetic growth rate of underlying assests:

$4 to $6 to $8 to $10 to $12 to $14

From the values, when the price of the underlying assests is $14, the price of the existing financial security is $128.

We are told to that when values of financial secrities increased from $4 to $128, that of underlying assests also increased from $4 to $14. If patterns hold for decreases as well as for increases. Therefore to get the value of financial securities decline if the value of underlying assests suddenly and unexpectedly fell by $6, we have:

Price of underlying assests when decreased by $6 =

$14-$6 = $8.

Therefore, price of existing financial security decline wil be:

$128-$8 = $120

6 0
3 years ago
The value of a cash budget is that it helps you predict and supply your future cash needs.
shtirl [24]
For the answer to the question that is being asked and shown above, it is "TRUE." <span>The value of a cash budget is that it helps you predict and supply your future cash needs. This statement is true as far as the value of a cash is concerned.</span>
4 0
3 years ago
A manager employed 100 workers at the beginning of an accounting period, and 120 workers at the end of the period. During the ac
My name is Ann [436]

Answer: 25%

Explanation:

Employee turnover rate (ETR) = number of employees leaving/Average number of employees × 100

Number of employees leaving = 50 employees leaving voluntarily + 5 terminated employees = 55 employees

Average number of employees = 100 + 120 = 220 employees

ETR = 55÷220 × 100 = 25%

Therefore the Employee turnover Rate for the accounting period was 25%

7 0
3 years ago
Assume that a bond makes 10 equal annual payments of $1,000 starting one year from today. The bond will make an additional payme
ohaa [14]

Answer:

$79,208.48

Explanation:

The computation of the current price of the bond is shown below:-

<u>Number of    Cash flow    PV annuity factor    Discounted cash </u>

<u>years                                                                        flow</u>

1 -10  years     $1,000                 8.3166                      $8,316.6

10 years        $100,000            0.7089188                $70,891.88

Current price of the bond                                        $79,208.48

Refer to the PV annuity factor so that we get to know the discounting factor value.

6 0
3 years ago
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