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
poizon [28]
3 years ago
5

Free cash flow and financial statements The primary objective of the corporate management team is to maximize shareholder wealth

. The company's board of directors and the shareholders evaluate and review managerial actions based on the growth in the value of the firm.Based on your understanding of what determines a firm's value, review the following: What does the value of a firm depend on? A. The ability to generate cash flow that is available to distribute to the company's investors, including creditors and stockholders.B. The ability to generate cash flow that is available to distribute to the company's stockholders only. Which of the options is most accurate? 1. Option A.2. Option B.When determining the value of a firm, which of the following statements is true? A. Investors are risk neutral. Other things being equal, they prefer to pay more for stocks that are less risky and have uncertain cash flows.B. Investors love risk. other things being equal, they prefer to pay more for stocks that are riskier and have uncertain cash flows. C. Investors are risk averse. other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks. Managers strive to increase the value of a firm. An increase in the intrinsic value of the firm's stocks is a good measure of the increase in the value of the firm. Intrinsic value of a firm's stock price is determined by calculating the present values of its free cash flows (FCF) discounted at a rate called the weighted average cost of capital (WACC). Tyler is a team member in Corporate Finance at a digital-content production company. He is required to forecast the free cash flows that the company will be able to generate in the next three years. Tyler takes into account only the following equation in his calculation: FCF = Sales Revenues - Operating Costs - Operating Taxes Will his calculation be an appropriate estimate of the FCF? A. Yes.B. No.Why or why not? A. Because his calculation fails to include the increase in the working capital required to grow sales.B. Because his calculation fails to recognize the increase in sales revenues.C. Because his calculation fails to include the value of the debt that the firm carries on its balance sheet.D. Because his calculation fails to include the costs of the firm's interest and dividend payments.

Business
1 answer:
aliina [53]3 years ago
8 0

Complete Question

The complete question is shown on the first uploaded image

Answer:

The  correct option for first question is A

The correct option for second question is B

Explanation:

The  correct option is A because the value of a firm depends on its ability to generate cash flow that is available to distribute to the company's investors, including creditors and stockholders.

For the second part the answer is  B  

  This because a financial asset will have value only if it can generate future positive cash flows.

Also  when valuating the cost at which the asset is acquired is not relevant

You might be interested in
Oriole Company made the following journal entry in late 2021 for rent on property it leases to Danford Corporation. Cash 153000
Morgarella [4.7K]

Answer:

$277,125

Explanation:

The calculation of  income tax expense is shown below:-

Income tax expense = Income taxes payable at the end of 2022 + (Rent revenue ÷ 2) × Tax rate

= $258,000 + (($153,000 ÷ 2) × 0.25)

= $258,000 + $76,500 × 0.25

= $258,000 + $19,125

= $277,125

Therefore for computing the income tax revenue we simply applied the above formula.

6 0
3 years ago
A mobile veterinary business, preferred pet care, inc., created a mission statement long before it opened its doors for business
Artemon [7]
I had to look for the options and here is my answer:
Based on the mission of a mobile veterinary business given above, aside from the ones listed, other criteria that should be considered for their mission statement is the description of the customers that they serve and also their social responsibility to the area where they operate since they transfer from one place to another.

5 0
3 years ago
In most cases, whether the contract has not yet been performed (an executory contract) or has been fully performed (an executed
Jlenok [28]

Answer: disaffirm

Explanation:

most cases, whether the contract has not yet been performed (an executory contract) or has been fully performed (an executed contract), the minor may disaffirm the contract.

It should be noted that a contract that is signed by a minor unless in some rare exceptions is normally void and therefore, the minor can disaffirm the contract.

8 0
3 years ago
Frankâ Pianki, the manager of an organic yogurt processing plant desires a quality specification with a mean of 18.0 âounces, an
aleksley [76]

Answer: 0.050

Explanation:

Mean = 18

USL = 18.6

LSL = 17.4

SD = 1.25

Cpk = Min{(mean - LSL / 3*sd), (USL - mean / 3*sd)}

= Min{ ( 18 - 17.4/ 3 * 1.25), (18.6 - 18 / 3 * 1.25)}

= Min { 0.05 0.05)

Cpk = 0.050

8 0
3 years ago
How to study using a 450 pg online college textbook in which you are asked detailed questions and scenarios.. It's overwhelming.
ArbitrLikvidat [17]

Answer:

Explanation:

There are many things in life that will seem overwhelming due to the how large and complex all of the data may be. The best way to get through these moments is to divide the task into smaller parts and sit down and dedicate time to it. For such a textbook divide the total amount of pages and read a little bit at a time, take breaks, reflect on what you have read, answer practice questions, and continue to the next group of pages. You will see after getting started that it is not as overwhelming anymore.

7 0
2 years ago
Other questions:
  • Consumers will often turn to one of their formal or informal ______ groups for advice and guidance on acceptable beliefs, attitu
    10·1 answer
  • A customer tells you that they “must have” a particular item that you are out of in your store. You can tell that the customer i
    5·1 answer
  • In the context of the six sections of the Position Analysis Questionnaire (PAQ), _____ represent the reasoning, decision-making,
    9·1 answer
  • The ability of an office holder to avoid challenges from quality challengers is known as the __________ effect.
    15·1 answer
  • Hard skills are teachable abilities like reading, solving equations, and using computer software. True or False
    5·2 answers
  • What is the best source of information for deciding whether a product meets your needs?. A. the product's advertisements. B. the
    14·2 answers
  • If former President Barack Obama were to come on TV and say, Take cover for the next 4 months cause of the Virus. All jobs and o
    13·1 answer
  • In the following​ statements, who is a free rider​?
    8·1 answer
  • 1. When a business finds it necessary to layoff some employees (due to slowing sales), what positive effects might this have for
    9·1 answer
  • A customer has opened a margin account and has signed both the hypothecation agreement and the loan consent agreement. The broke
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!