Answer:
The correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.
Explanation:
Free cash flow (FCF) refers to the cash that a company generates after taking into consideration cash outflows needed to support operations and maintain the capital assets of the company.
When the free cash flow of a company is expected to grow at a certain constant rate, the implication is that the the value of operations of that company one year from the current period is expected to be higher than the current price.
Based on the explanation above, the correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.
Answer:
A.) Firm B must have a higher ROE than first A.
Explanation:
Debt ratio is defined as percentage of a company's assets that is made up of debt and so it is calculated as a ratio of debt to assets of a company.
Interest expense is the amount that is paid to service a loan.
This implies that company B has higher loan portfolio than Company A.
Considering the accounting formula
Equity= Asset- Debt
So an increase in debt will result in a decrease in equity.
Return on equity= Net income/Equity
It follows that as debt increases and equity reduces, the ROE will increase since a shrink in the ROE denominator (Equity) will lead to an increase in the ratio.
Answer:
I would personally try to teach them myself since I have more experience and help them get better at their work environment.
Explanation:
Answer:
The correct answer is letter "A": True.
Explanation:
The Internal Service Revenue (<em>IRS</em>) offers Volunteer Income Tax Assistance (<em>VITA</em>) for elderly people who do not know how to file taxes on their own. The volunteers follow a series of practices during the interview with the taxpayers to gather their taxable information accurately. The principle of Due Diligence allows volunteers to <em>ask for clarification when the taxpayer information seems unclear or inconsistent</em>. However, if the information is not unusual, there is no need to request proof of it.
Black, so A. you look slimer and B. they are very practical.