Answer:
1. Free cash flow= NOPAT - Net investment in total operating capital
Free cash flow = $925 - ($2,500 - $2,000)
Free cash flow = $925 - $500
Free cash flow = $425.
2. Particulars Amount
Earnings before Interest and Tax $700
Less : Taxes at 35% <u>$245</u>
Net operating income after tax (NOPAT) <u>$455</u>
Therefore, The Net operating profit after Tax (NOPAT) is $455.
Answer:
a) Total; Diversifiable; Non-Diversifiable
Explanation:
Risk refers to the uncertainty of returns, chances of loss while investment. Securities have risk, their price might fall much, as to incur loss for the security holder.
Diversifiable Risk is the risk component due to features particular to the security, not due to general market situation. Non Diversifiable risk is the risk component due to general economic & market position features, not due to particular to the security.
Securities portfolios are created to diversify the risk. But, this reduces only the diversifiable (security particular) risk. Non Diversifiable (common market) risk is common to all the securities, so it can't be diversified.
Hence, Securities combined to create portfolio : Risk of portfolio by including 10 - 20 securities reduces Total Risk. It eliminates Diversifiable Risk, but the Non Diversifiable Risk still remains.
Answer:
The firm's budgeted payments in March is $206,500
Explanation:
The purchase pattern is categorized into three percentage : 25%, 55% , and 20%
Here, following month is considered to be a month which is before than actual month.
The firm's budgeted payments in March is computed below:
= 25% of march month + 55% of February month + 20% of January month
= 25% × $240,000 + 55% × $190,000 + 20% × $210,000
= $60,000 + $104,500 + $42,000
= $206,500
Thus, the firm's budgeted payments in March is $206,500
Answer:
A. position power
Explanation:
The person working in the company or organisation , having high position power , plays a very important role .
As the person has got the right to recruit any employees , depending to his or her abilities ,
The person can reward as well as punish the for any good or faulty performance .
Hence , from the given scenario of the question ,
The correct option is A. position power .
Answer:The answer is increased their operations, the business is a conglomerate, The operating supplies is subject to wild pricing swing, operation of the business in dangerous part of the world reduces the profit.
Explanation:
Merger is the joining of two or more independent company's into one bigger and United company. The procedures for merger involved the adoption of the resolution of a merger by the board of directors of the two companies, the resolution will set out the new name to be adopted, the terms and conditions of the merger. It also includes the method of converting securities, the plan must be adopted by the two- third majority of the shareholders of both firms. Then all necessary documents will then be submitted to the registrar of company, the registrar of company will then issue a certificate of merger it then that the merger comes into existence. The merger of two companies ensures the raising of enough capital for business. It also ensures the reduction of competition between rivals,it also gives the business the opportunity to compete favourably with other well established firms. It may also ensures the diversification of their range of products and ensures the efficiency of the business.
A merger can be a conglomerate merger, a conglomerate is a merger between two or more different companies under a common ownership and runs as a single organization. The business may be doing a business which are not related before the merger and they may be operating in a different industries or in a different geographical locations.
A price swing is a rise and fall in the sum or amount of money at which a product is valued in the market. The price of a product such as operating supplies may be moving forward or backward in the market which may affect the supply of such a product. The price of a product in the market is determined by the market mechanism which is the force interplay of both demand and supply.
Oversea operation is the expansion of the business to other parts of the world with a view to gain a market share of the market and improve on the profitability of the business. When a company is operating in the dangerous parts of the world such as a country where there is terrorist activities or where there is civil war, it affects their operations and has a great effect on the company's investment in such countries such a company may be forced to close their operations in such a war ravage countries which will affect the profit of the company. It often leads to the reduction in the company's profits when the final account of the company's is prepared.
