How important is cash flow to the condition

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Reference no: EM133115979

Management - Finance Task

Meeting 2:

Question:

1. A financial manager needs or does not understand the company's financial statements? Explain!
2. How important is Cash Flow to the condition of the company?

CASE :

1. Your personal tax rate is 15%. You can invest in corporate bonds that yield 9% or in bonds that yield 7%. Which investment should you choose?

2. Which of the following actions can increase the amount of cash on a company's balance sheet?
a. The company issues new common shares amounting to Rp 2,000,000,000
b. The company invested Rp 3,000,000,000 in plant and equipment.
c. The company generated negative net income and negative net cash flow during the year.
d. The company increases the dividends paid on its common stock.

Reference no: EM133115979

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