Answer:
Net cash flow from investing activities is $47.2 million -$58.6 million =-11.4 million.
Explanation:
Draft Cashflow Statement.
Operating Activities; $0.0 million
Investing Activties;
Cash Inflows;
Sales of ; investment $32.0 million,plus sales of Land $15.2 million =$47.2 million.
Cash outflows; Purchase of ; treasury stock -$21.2, plus equipment -$25.2 million, plus patent -$12.2 million =-$58.6 million
Net cash flow from investing activities is $47.2 million less $58.6 million=-11.4 million.
Financing Activities;
Issues of common stock $40.4
Note that sales of own common stock is a financing activity
Answer:
$36.65
Explanation:
D1 = D*(1+g)
D1 = 1.8*(1+0.12)
D1 = 1.8(1.12)
D1 = $2.016
Price of stock P = D1 / (re - g)
Price of stock P = $2.016 / (0.175 - 0.12)
Price of stock P = $2.016 / 0.055
Price of stock P = $36.654545
Price of stock P = $36.65
So, $36.65 is the most that i will be willing to pay for the common stock if i am to purchase it today.
Answer:
b. No, the return is less than the required rate of 9%
Explanation:
Projected sale = 100000
Projected exp = 86000
Profit = 14000
Assets= 200000
Return on assets = 14000/200000 = 7%
Expected return = 9%
Hence, project should not be taken
Answer:
the correct answer is *not spending all their current incomes.
Explanation:
if you look at all the other options, they are not creating wealth but depletes it away. the only way to build wealth is by investing and saving over time. ideally, by not spending all their current income.
