Homework Answers
1. a. missed opportunities.
The value of money in future is perceived to be lesser than its value today for the following reasons;
Risk and uncertainity associated with future.
Inflation rate
Interest that can be earned if money is received today.
2.d a current asset.
Inventory is classified as a current asset, since they are usually converted into money within the next operating cycle.
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In the discussion on Discounted Cash Flow which was NOT one of the reasons given for...
Suppose a security with a risk-free cash flow of $ 152$152 in one year trades for...
Suppose a security with a risk-free cash flow of $ 152$152 in one year trades for $ 138$138 today. If there are no arbitrage opportunities, what is the current risk-free interest rate? The risk-free rate is nothing%. (Round to two decimal places.)
Suppose a security with a risk-free cash flow of $152 in one year trades for $137 today. If there are no arbitrage opportunities, what is the current risk-free interest rate?
Suppose a security with a risk-free cash flow of $152 in one year trades for $137 today. If there are no arbitrage opportunities, what is the current risk-free interest rate?
Which of the following is not one of the four fundamental factors affecting the cost of...
Which of the following is not one of the four fundamental factors affecting the cost of money? Production opportunities Time preferences for consumption Risk Local government taxes Risk represents the probability that an investment will generate a low or negative return in a financial market (TRUE/FALSE)?_____________________ Inflation tends to push the prices of goods and services downward (TRUE/FALSE)? Suppose your friend chooses to spend $4,500 out of her current income of $10,000 and save the rest with a bank hoping to earn...
Which of these is the weakest reason to prefer using the Discounted Cash Flow Method over...
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1. The key factor(s) in the 2008 financial crisis / housing bubble was Select one: a....
1. The key factor(s) in the 2008 financial crisis / housing bubble was Select one: a. Corporate greed b. Lack of regulation of the financial and housing sectors c. Low interest rates and federal intervention in the housing market d. High interest rates 2. According to the video Money for Nothing, which of the following was proposed regarding the post-2008 economic recovery? Select one: a. We may be passing through the "eye of the storm" b. The crisis is over...
3. A company forecasts free cash flow in one year to be -$80 million and free...
3. A company forecasts free cash flow in one year to be -$80 million and free cash flow in two years to be $200 After the second year, free cash flow will grow at a constant rate of 6 percent per year forever. If the overall cost of capital is 14 percent, what is: a. The horizon value? b. The current value of operations? . The value of company's operations is $400 million. The company's balance sheet shows $20 million...
Free cash flow? Given the information above what is the amount of free cash flow for...
Free cash flow?
Given the information above what is the amount of free cash flow
for the company for the year?
Please provide formula/equations?
BUS 7013 - Managerial Accounting Cash Flow Statement Amount Calculations - Chapter 14 End of year Beginning of year Current year Change Income statement Balance sheet Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment, at cost Less: Accum. depreciation Net equipment Total assets 86,000 112,000 141,000 18,000 357,000 298,000 (100,000) 198,000 555,000 54,000 126,000...
16. You are scheduled to receive a $1,000 cash flow in one year and receive a...
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Which of the following is a current liability? Select one: a. All of these answer choices...
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3. A company forecasts free cash flow in one year to be -$80 million and free cash flow in two years to be $200 After the second year, free cash flow will grow at a constant rate of 6 percent per year forever. If the overall cost of capital is 14 percent, what is: a. The horizon value? b. The current value of operations? . The value of company's operations is $400 million. The company's balance sheet shows $20 million...
Free cash flow?
Given the information above what is the amount of free cash flow
for the company for the year?
Please provide formula/equations?
BUS 7013 - Managerial Accounting Cash Flow Statement Amount Calculations - Chapter 14 End of year Beginning of year Current year Change Income statement Balance sheet Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment, at cost Less: Accum. depreciation Net equipment Total assets 86,000 112,000 141,000 18,000 357,000 298,000 (100,000) 198,000 555,000 54,000 126,000...
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