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BlackZzzverrR [31]
3 years ago
15

Management can make any form of distribution to the firm’s shareholders using the company’s free cash flow (FCF). The underlying

objective is to maximize shareholder wealth by increasing the firm’s value. Any use of FCF that negatively affects the firm’s value is not considered a good use of the FCF.
Which of the following uses is considered to be a good use of free cash flow?

1.Invest in nonoperating assets
2.Invest in operating assets
3.Theoretically, there are some traditional ways of using FCF. If a company uses all of its FCF to pay off all of its debt, it would reap the maximum benefit from the tax-deductible component of interest payments toward the debt.
4.This statement is false because if the firm uses its FCF to pay off all of its debt, it would have and no deductible.
Business
1 answer:
vovikov84 [41]3 years ago
3 0

Answer:

A good use of free cash flow is to Invest in nonoperating assets

Explanation:

Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing debt, or other purposes.

If the underlying objective is to maximize shareholder wealth by increasing the firm’s value. Any use of FCF that negatively affects the firm’s value is not considered a good use of the FCF.

A good use of FCF would be to invest in nonoperating assets such as marketable securities, investments in other companies, etc.)

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Delvig [45]

Answer:

$210,000

Explanation:

The computation of the external price is shown below

Making cost =  buying  cost

$120,000 + $25,000 + $45,000 + $30,000) = external price + Unavoidable fixed cost (30,000-20,000)

$220,000 = External price + $10,000

So,

External price = 210,000

Hence, the same is to be considered

Therefore the external price is $210,000

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3 years ago
Out of a list of the values 12, 7, 3, 5, 8, and 2, which result would the MIN function return?
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It’s just right, trust

3 0
3 years ago
Read 2 more answers
Chhom corporation makes a product whose direct labor standards are 0.8 hours per unit and $34 per hour. In November the company
Irina-Kira [14]

Answer:

$17,000 Favorable

Explanation:

Provided information, we have

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Actual rate per hour = $118,020/5,620 = $21 per hour

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4 0
3 years ago
An account related with another account on the financial statements that 1) directly reduces the related account and 2) has an o
VLD [36.1K]

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Contra account.

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A contra account is an account that has an opposite of what is the normal balance for the class of such an account. a company would be able to report the original amount and in so doing also be able to report the reduction and then what is the net amount would be reported. in other words such an account is used to reduce the value of another related account. And thereafter the net value is what is going to be reported.

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The number of adjustments that Steve has to make for Jones's property is 0.

<h3>What is a comparative market analysis?</h3>

The comparative market analysis is the term that is used to refer to the estimate of the value of a person's home which is based on all of the other homes that are similar homes in the area.

The adjustments that have to be made to a property is going to be 0 based on the property.

Read more on market analysis here:

brainly.com/question/17246850

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