The free cash flow hypothesis states ____________________. A) That issuing debt requires interest and principal payments...
The free cash flow hypothesis states ____________________.
A) That issuing debt requires interest and principal payments to be paid thereby reducing the potential of management to waste resources.
B) That firms with greater free cash flow will pay more in dividends thereby reducing the risk of bankruptcy (or financial distress).
C) That firms with greater free cash flow should issue new equity to help minimize the wasting of resources by managers.
D) That firms with higher levels of free cash flow should reward their managers with bonuses.
Homework Answers
Free cash flow is the cash flow that is available for distribution to all its investors-debt holders and shareholders. It is the cash remaining after paying for capital expenditure and expenses.
Free cash flow hypothesis states that companies which has free cash flow
will invest in assets that have low value and in reducing its debt obligations.
Hence, the answer is option a.
In case of any query, kindly comment on the solution.
Add Answer to:
The free cash flow hypothesis states ____________________.
A) That issuing debt requires interest and principal payments...
Paragraph One- Introduce your primary source "Chapter" (Economics of Public Issues, Miller et.al, 2014) claims....introduce the...
Paragraph One- Introduce your primary source "Chapter" (Economics of Public Issues, Miller et.al, 2014) claims....introduce the main point of the chapter and explain: Why should we care? How will this topic, issue, problem affect us? Or more to the point, who will benefit from knowing more about this issue, situation, problem. Why is this an important topic, issue, or problem? Paragraph Two Introduce the main points of your research. Make sure you give credit to at least two other sources....
I need help with my very last assignment of this term PLEASE!!, and here are the instructions: After reading Chapter T...
I need help with my very last assignment of this term
PLEASE!!, and here are the instructions: After reading Chapter Two,
“Keys to Successful IT Governance,” from Roger Kroft and Guy
Scalzi’s book entitled, IT Governance in Hospitals and Health
Systems, please refer to the following assignment instructions
below.
This chapter consists of interviews with executives
identifying mistakes that are made when governing healthcare
information technology (IT). The chapter is broken down into
subheadings listing areas of importance to understand...
Can Technology Save Sears? Sears, Roebuck used to be the largest retailer in the United States, w...
Can Technology Save Sears? Sears, Roebuck used to be the largest retailer in the United States, with sales representing 1 to 2 percent of the U.S. gross national product for almost 40 years after World War II. Since then, Sears has steadily lost ground to discounters such as Walmart and Target and to competitively priced specialty retailers such as Home Depot and Lowe’s. Even the merger with Kmart in 2005 to create Sears Holding Company failed to stop the downward...
I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this p...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...
Can you answer only question 5and 6 Questions: 1. How could the promotion of UK Hoover...
Can you answer only question 5and 6 Questions: 1. How could the promotion of UK Hoover have been better designed? Be as specific as you can. 2. Given the fiasco that did occur, how do you think Maytag should have responded? 3. Comment on the following statement: “Firing the three top executives of UK Hoover is unconscionable. It smacks of a vendetta against European managers by an American parent. After all, their only ‘crime’ was a promotion that was too...
write a summary after that answer the questions CASE 3.3 United Way of America In 1887,...
write a summary after that answer the
questions
CASE 3.3 United Way of America In 1887, several of Denver's community and religious leaders established the Charity Organization Society. During its first year of operation, the organization raised a little more than $20,000, which it then distributed to several local charities. The charity-of-charities fundraising concept spread across the United States over the fol- lowing decades. After several name changes, the original Denver-based organization adopted the name United Way in 1963. United...
Discussion questions 1. What is the link between internal marketing and service quality in the ai...
Discussion questions
1. What is the link between internal marketing and service
quality in the airline industry?
2. What internal marketing programmes could British Airways
put into place to avoid further internal unrest? What potential is
there to extend auch programmes to external partners?
3. What challenges may BA face in implementing an internal
marketing programme to deliver value to its customers?
(1981)ǐn the context ofbank marketing ths theme has bon pururd by other, nashri oriented towards the identification of...
10. Write a one-page summary of the attached paper? INTRODUCTION Many problems can develop in activated...
10. Write a one-page summary of the attached paper? INTRODUCTION Many problems can develop in activated sludge operation that adversely affect effluent quality with origins in the engineering, hydraulic and microbiological components of the process. The real "heart" of the activated sludge system is the development and maintenance of a mixed microbial culture (activated sludge) that treats wastewater and which can be managed. One definition of a wastewater treatment plant operator is a "bug farmer", one who controls the aeration...
Case: Enron: Questionable Accounting Leads to CollapseIntroductionOnce upon a time, there was a gleaming...
Case: Enron: Questionable Accounting Leads to CollapseIntroductionOnce upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant “E,” slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm laid off 4,000...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...
Paragraph One- Introduce your primary source "Chapter" (Economics of Public Issues, Miller et.al, 2014) claims....introduce the main point of the chapter and explain: Why should we care? How will this topic, issue, problem affect us? Or more to the point, who will benefit from knowing more about this issue, situation, problem. Why is this an important topic, issue, or problem? Paragraph Two Introduce the main points of your research. Make sure you give credit to at least two other sources....
I need help with my very last assignment of this term
PLEASE!!, and here are the instructions: After reading Chapter Two,
“Keys to Successful IT Governance,” from Roger Kroft and Guy
Scalzi’s book entitled, IT Governance in Hospitals and Health
Systems, please refer to the following assignment instructions
below.
This chapter consists of interviews with executives
identifying mistakes that are made when governing healthcare
information technology (IT). The chapter is broken down into
subheadings listing areas of importance to understand...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...
write a summary after that answer the
questions
CASE 3.3 United Way of America In 1887, several of Denver's community and religious leaders established the Charity Organization Society. During its first year of operation, the organization raised a little more than $20,000, which it then distributed to several local charities. The charity-of-charities fundraising concept spread across the United States over the fol- lowing decades. After several name changes, the original Denver-based organization adopted the name United Way in 1963. United...
Discussion questions
1. What is the link between internal marketing and service
quality in the airline industry?
2. What internal marketing programmes could British Airways
put into place to avoid further internal unrest? What potential is
there to extend auch programmes to external partners?
3. What challenges may BA face in implementing an internal
marketing programme to deliver value to its customers?
(1981)ǐn the context ofbank marketing ths theme has bon pururd by other, nashri oriented towards the identification of...
Most questions answered within 3 hours.
-
1. When can parametric and non-parametric statistical tests be
used?
A. Parametric?
The independent variable is...
asked 2 minutes ago -
How can bacteria resist killing from cationic antimicrobial
peptides (CAMPs)? Choose all that apply. a. Use...
asked 9 minutes ago -
As an economic term, what is the definition of :Technological
Trends? Please try and keep the...
asked 10 minutes ago -
Labor demand will be less elastic in those labor markets in
which:
A.
the price elasticity...
asked 11 minutes ago -
5 situations are listed below and 8 reduction chemicals are
listed A-H below, match the letters...
asked 17 minutes ago -
1. If more spouses decide to quit their jobs to stay home with
their young children...
asked 20 minutes ago -
Please use algebraic manipulation to prove the following
statement:
x'y'z' + x'yz' + x'yz + xyz'...
asked 21 minutes ago -
3.Another patient has a family history in which:
1. the disease was equally distributed among the...
asked 24 minutes ago -
If you are the TM of a shipper of cooking oil the sales
department wants to...
asked 22 minutes ago -
NEED THIS URGENTLY PLEASEEE
Suppose a fair coin is tossed 5 times and the result are...
asked 31 minutes ago -
Find the magnetic field B produced by several circular loops of
which has a radius given...
asked 39 minutes ago -
A mole of monatomic ideal gas is expanded from 0.45 L to 0.75L
at an external...
asked 38 minutes ago