Homework Answers
| Cash flow from assets = Operating Cash Flow - Net Capital Spending - Change in Net Working Capital (NWC) | ||||||||||
| Net Capital Spending = Ending net fixed assets - beginning net fixed assets + depreciation | ||||||||||
| When the firm acquires new fixed assets the Ending net fixed assets increases | ||||||||||
| When the Ending net fixed assets increases the Net capital spending increases. | ||||||||||
| When net capital spending increases the cash flow from assets is negative. | ||||||||||
| B. the firm acquired new fixed assets. | ||||||||||
Add Answer to:
UCCICase WC Capital Spung 22. Which one of the following must be true if a firm...
A negative cash flow to owners indicates that a firm has _____. Incurred net losses and...
A negative cash flow to owners indicates that a firm has _____. Incurred net losses and faces financial distress. Borrowed more money. Reduced the amount of debt. Sold additional shares of stock. Issued dividends while maintaining a constant number of outstanding shares of stock. A negative cash flow to creditors indicates that a firm has ____. Incurred net losses and faces financial distress. Borrowed more money. Reduced the amount of debt. Sold additional shares of stock. Issued dividends while maintaining...
Which of the following is the least expensive capital for the firm? Bond capital Preferred Stock capital...
Which of the following is the least expensive capital for the firm? Bond capital Preferred Stock capital Common Stock capital What will happen to your yield when you pay more for an investment, holding all else constant? The yield will go down The yield will go up The yield could go up or down The yield should not be affected Which of the following is a true statement? The cost of bond capital for the firm is not tax deductible...
Example: Funding and Ownership You founded your own firm two years ago. You initially contributed $100,000...
Example: Funding and Ownership You founded your own firm two years ago. You initially contributed $100,000 of your money and, in return received 1,500,000 shares of stock. Since then, you have sold an additional 500,000 shares to angel investors. You are now considering raising even more capital from a venture capitalist. This venture capitalist would invest $6 million and would receive 3,000,000 newly issued shares. Assuming that this is the venture capitalist's first investment in your company, what percentage of...
Only say choice 8. In order to maximize firm value, management should invest in new assets...
Only say choice
8. In order to maximize firm value, management should invest in new assets when the internal rate of retum a. greater or equal to the firm's marginal cost of capital. b. greater than the cost of debt financing. c. less than or equal to the accounting rate of return. 9. The cost of capital is: a. the opportunity cost of using funds to invest in new projects. b. the rate of return the firm must ean on...
Which of the following isare) an example(s) of a capital market instrument? a Commercial paper. b....
Which of the following isare) an example(s) of a capital market instrument? a Commercial paper. b. Preferred stock. c. bonds d. both 'b' and 'e'. 13. Which of the following statements is/are correct? a Apple Computer decides to issue additional stock with the assistance of its investment banker. An investor purchases some of the newly issued shares. This is a primary market transaction. b. Apple Computer decides to issue additional stock with the assistance of its investment banker. An investor...
______ 17. Each of the following is a typical source of long-term capital for a firm...
______ 17. Each of the following is a typical source of long-term capital for a firm EXCEPT Accounts Payable. Preferred Stock. Long-Term Debt. Common Stock. ______ 18. When calculating a firm’s “Weighted Average Cost of Capital” (WACC), the cost of each type of capital is weighted by A. the firm’s beta value. B. the current inflation rate in the economy. C. the bank’s prime lending rate. D. its proportion in the firm’s capital structure. ______ 19. The “weights” in the...
5) 5) Which one of the following variables is the exponent in the present value formula?...
5) 5) Which one of the following variables is the exponent in the present value formula? A) Present value B) Interest rate C) Number of time periods D) Future value E) There is no exponent in the present value formula 6) 6) What are the distributions of either cash or stock to shareholders by a corporation called? A) Coupon payments B) Retained earnings C) Capital payments D) Dividends E) Diluted profits 7) Suppose the first comic book of a classic...
5. Employee stock ownership plans (ESOPs) Aa Aa E Why would a firm be willing to...
5. Employee stock ownership plans (ESOPs) Aa Aa E Why would a firm be willing to establish an employee stock ownership plan (ESOP)? Check all that apply. O Cash dividends paid on ESOP stock are tax deductible if the dividends are used to repay the loan that established the ESOP. Employers are not required to match Social Security and Medicare taxes withheld from employees' paychecks when the employees are part of an ESOP. It is common for financial institutions to...
Concept Questions 1. Liquidity True or false: All assets are liquid at some price. Explain. 2....
Concept Questions 1. Liquidity True or false: All assets are liquid at some price. Explain. 2. Accounting and Cash Flows Why might the revenue and cost figures shown on a standard income statement not represent the actual cash inflows and outflows that occurred during a period? CHAPTER 2 Financial Statements and Cash Flow 35 3. Accounting Statement of Cash Flows Looking at the accounting statement of cash flows. what does the bottom-line number mean? How useful is this number for...
5. Employee stock ownership plans (ESOPs) Aa Aa Why would a firm be willing to establish an emplo...
Please answer the following. If
correct, I will make sure to thumbs up. Thank you!
5. Employee stock ownership plans (ESOPs) Aa Aa Why would a firm be willing to establish an employee stock ownership plan (ESOP)? Check all that apply. Cash dividends paid on ESOP stock are tax deductible if the dividends are used to repay the loan that established the ESOP. Employers are not required to match Social Security and Medicare taxes withheld from employees' paychecks when the...
Example: Funding and Ownership You founded your own firm two years ago. You initially contributed $100,000 of your money and, in return received 1,500,000 shares of stock. Since then, you have sold an additional 500,000 shares to angel investors. You are now considering raising even more capital from a venture capitalist. This venture capitalist would invest $6 million and would receive 3,000,000 newly issued shares. Assuming that this is the venture capitalist's first investment in your company, what percentage of...
Only say choice
8. In order to maximize firm value, management should invest in new assets when the internal rate of retum a. greater or equal to the firm's marginal cost of capital. b. greater than the cost of debt financing. c. less than or equal to the accounting rate of return. 9. The cost of capital is: a. the opportunity cost of using funds to invest in new projects. b. the rate of return the firm must ean on...
Which of the following isare) an example(s) of a capital market instrument? a Commercial paper. b. Preferred stock. c. bonds d. both 'b' and 'e'. 13. Which of the following statements is/are correct? a Apple Computer decides to issue additional stock with the assistance of its investment banker. An investor purchases some of the newly issued shares. This is a primary market transaction. b. Apple Computer decides to issue additional stock with the assistance of its investment banker. An investor...
5) 5) Which one of the following variables is the exponent in the present value formula? A) Present value B) Interest rate C) Number of time periods D) Future value E) There is no exponent in the present value formula 6) 6) What are the distributions of either cash or stock to shareholders by a corporation called? A) Coupon payments B) Retained earnings C) Capital payments D) Dividends E) Diluted profits 7) Suppose the first comic book of a classic...
5. Employee stock ownership plans (ESOPs) Aa Aa E Why would a firm be willing to establish an employee stock ownership plan (ESOP)? Check all that apply. O Cash dividends paid on ESOP stock are tax deductible if the dividends are used to repay the loan that established the ESOP. Employers are not required to match Social Security and Medicare taxes withheld from employees' paychecks when the employees are part of an ESOP. It is common for financial institutions to...
Concept Questions 1. Liquidity True or false: All assets are liquid at some price. Explain. 2. Accounting and Cash Flows Why might the revenue and cost figures shown on a standard income statement not represent the actual cash inflows and outflows that occurred during a period? CHAPTER 2 Financial Statements and Cash Flow 35 3. Accounting Statement of Cash Flows Looking at the accounting statement of cash flows. what does the bottom-line number mean? How useful is this number for...
Please answer the following. If
correct, I will make sure to thumbs up. Thank you!
5. Employee stock ownership plans (ESOPs) Aa Aa Why would a firm be willing to establish an employee stock ownership plan (ESOP)? Check all that apply. Cash dividends paid on ESOP stock are tax deductible if the dividends are used to repay the loan that established the ESOP. Employers are not required to match Social Security and Medicare taxes withheld from employees' paychecks when the...
Most questions answered within 3 hours.
-
What is the purpose of the 2' hydroxyl group in RNA? What is
the reason this...
asked 7 minutes ago -
You currently have 20,000X ethidium bromide. You want to make
250 mL of 1X ethidium bromide...
asked 19 minutes ago -
What mass of lead is needed to absorb 348 J of heat if the temp
of...
asked 22 minutes ago -
Explain the difference between an auction with reserve
and an auction without reserve. if not specified,...
asked 24 minutes ago -
Write the net ionic equation for the precipitation reaction that
occurs when aqueous solutions of aluminum...
asked 27 minutes ago -
How do we find the slope distance, given the horizontal distance
and the zenith angle?
For...
asked 26 minutes ago -
The table to the right lists probabilities for the corresponding
numbers of girls in three births....
asked 37 minutes ago -
The inverse demand function for good X is P = 5−0.05Q. The
firm’s cost curve is...
asked 36 minutes ago -
The Fresh Connection is really pushing the new line of juice
products. Given that it takes...
asked 42 minutes ago -
An acute decrease in mean arterial pressure (by getting up very
quickly, for instance) will cause...
asked 40 minutes ago -
Is the pH of solutions important when using the Fluoride ISE? If
so, why?
asked 44 minutes ago -
Producer surplus is:
a.
always equal to consumer surplus.
b.
the amount paid to sellers above...
asked 45 minutes ago