Focus on after-tax cash flow

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Reference no: EM132022511

1. The making investment decisions, we focus on after-tax cash flow’s because

A. Taxes must be paid

B. Those are the cash flows available to shareholders

C. Taxes have a significant effect on profits

D. Tax rates differ across companies

2. Which of the following is true when a company has very little debt

A. Expected cost bankruptcy will be moderate

B. The expected cost bankruptcy will be about zero

C. The risk bankruptcy is still significant

D. Managers will work very hard to avoid bankruptcy

Reference no: EM132022511

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