ABC Corporation is an all-equity firm. What would be the effect of the operating cash flow...

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ABC Corporation is an all-equity firm. What would be the effect of the operating cash flow...

ABC Corporation is an all-equity firm. What would be the effect of the operating cash flow to the firm if it has positive net earnings?

ignores both depreciation and taxes.

is unaffected by the depreciation expense.

must be negative.

increases when the tax rate decreases.

business finance

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Answer 1

Answer #1

Option d is correct increases when tax rate decreases.
Operating cash flow includes depreciation and taxes and if net earnings is positive operating cash flow is always positive.

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Answer 2

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