Which of the following items affect free cash flows to debt

Assignment Help Finance Basics
Reference no: EM131144321

Which of the following items affect free cash flows to debt and equity holders? Which affect free cash flows to equity alone? Explain why and how. 
All answers assume a tax rate > 0. 
An increase in accounts receivable 
A decrease in gross margins 
An increase in property, plant, equipment 
An increase in inventory 
Interest expense 
An increase in prepaid expenses 
An increase in notes payable to the bank

Reference no: EM131144321

Questions Cloud

What does the coefficient of square feet represent : What is the estimated regression line? What does the coefficient of square feet represent? Is the sample size large enough for the estimated coefficient of square feet to be statistically significant at the 5% level?
Provide a linear programming model formulation only : Each day, at most 20,000 barrels of oil can be purchased and 8 hours of cracker time are available. Sunco would like to maximize their profits. Provide a linear programming model formulation only; you do not need to identify an optimal solution.
Interest is computed using a 360 day year : Interest is computed using a 360-day year. During October, the following transactions were completed.
Provide a linear programming model formulation and solve : The profit contributions are $40 per 1000 board feet of lumber products and $60 per 1000 square feet of plywood. The company is interested in maximizing profits. Provide a linear programming model formulation and solve for an optimal solution.
Which of the following items affect free cash flows to debt : Which of the following items affect free cash flows to debt and equity holders? Which affect free cash flows to equity alone? Explain why and how.
What type of account is allowance for doubtful accounts : What type of account is Allowance for Doubtful Accounts? How does it affect how accounts receivable is reported on the balance sheet at the end of the accounting period?
Would this condition be satisfied if the number of waiting : The vice president of a bank wishes to provide banking services so that the probability of the number of waiting customers being greater than 8 is less than .07. Would this condition be satisfied if the number of waiting customers is a Poisson random..
Calculate the total estimated bad debts based : Calculate the total estimated bad debts based on the above information.
What is the probability that at least 30 employees out of 80 : What is the probability that at least 30 employees out of 80 would be financially secure if they lost their job for 6 months to a year? Do a 'what-if' analysis by changing the probability to .4, and .5, and rework part a).

Reviews

Write a Review

Finance Basics Questions & Answers

  The arbitrage pricing model apm suppose a three-factor apm

the arbitrage pricing model apm. suppose a three-factor apm holds and the risk-free rate is 6 percent. you are

  Compute the initial purchase price for an asset with book

compute the initial purchase price for an asset with book value of 34800 and total accumulated depreciation of

  Duration of a treasury note

What is the duration of this Treasury note?

  Why do public utilities generally use different capital

why do public utilities generally use different capital structures than pharmaceutical

  What are the two reasons liquidity risk arises how does

what are the two reasons liquidity risk arises? how does liquidity risk arising from the liability side of the balance

  Calculate earnings per share

Southland Industries has $60,000 of 16 percent bonds outstanding, 1,500 shares of preferred stock paying an yearly dividend of $5 per share, and 4,000 shares of common stock outstanding.

  Based on this information what is the amount and percentage

the comparative accounts payable and long-term debt balances of a company are provided below.20122011accounts

  Company hta had free cash flow for firm fcff of 1500000

company hta had a free cash flow for the firm fcff of 1500000 last year. it is expected the fcff will keep a

  Evaluate the project on a pre-tax basis

what is the NPV of this project, assuming that you should evaluate the project on a pre-tax basis?

  Compare the calculated financial ratios against the industry

Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company

  Great discussion around strategic planning

Great discussion around strategic planning (selecting the most qualified candidate) in keeping with the strategic direction of an organization. It has a two part process

  About time and place over the internet

The Crossroads High School (CHS) Class of 1985 is planning its 25th reunion next year. The organizing group has so far sent out two surveys about time and place over the Internet and has a CHS 1985 Facebook group set up for class members who have ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd