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asambeis [7]
3 years ago
13

The information are as follows:

Business
1 answer:
Dafna1 [17]3 years ago
4 0

Answer:

$250

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

An increase in assets other than cash is an outflow while an increase in liabilities is an inflow.

Hence the cash flows from investing activities

= -$200 + $450

= $250

Other activities are reported under operating activities section.

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If you expect a stock be priced at $80 in one year and pay a dividend of $1.85, what is the most you would be willing to pay for
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