Why are equity earnings usually greater than cash flow

Assignment Help Finance Basics
Reference no: EM13868169

Why are equity earnings usually greater than cash flow generated from the investment? How can these equity earnings distort profitability analysis?

Reference no: EM13868169

Questions Cloud

Move from rest through 90 degrees in 30 second : A door has mass of 44,000 kg. A rotating inertia of 5.7 X 10^5 kg m^2 at the hinge. width is 3.1 m. Minimum force at the outer edge to make it move from rest through 90 degrees in 30 second.
Calculate the book value of the machine at the end of year : A machine that cost $ 400,000 has an estimated residual value of $ 40,000 and an estimated useful life of four years. The company uses double- declining- balance depreciation. Calculate its book value at the end of year 3. Round to the nearest dollar..
Find the hight the ball rebounds : Steel ball of 300 g is attached to a 85cm fixed at one end and is released with cord horizontal. At bottom of its path it hits a 3.5 kg steel block at rest. Elastic and no friction. Find the hight the ball rebounds.
Change of moment of inertia is what factor of original : An ice skater spins at .8 rev/s with arms extended. Pulls arms in and spins 5.3 rev/s. Change of moment of inertia is what factor of original.
Why are equity earnings usually greater than cash flow : Why are equity earnings usually greater than cash flow generated from the investment? How can these equity earnings distort profitability analysis?
Member cb for a condition of equilibrium : A strut CB is guyed back to a wall support through cable BA. Two forces are applied to the concurrent joint at B. Determine the tension in cable BA and the force in member CB for a condition of equilibrium to occur.
Which causes thecylinder to rotate : Imagine that you have a solid cylinder (M = 2 kg, R = 0.1m, I =12MR2) and have wound a very light wire around it many times. You then attach a block of mass m = 1kg to the end of the wire, and allow the block to fall (starting from rest), unwinding t..
Calculate the amount of depreciation : Calculate the amount of depreciation to report during the year ended December 31 for equipment that was purchased at a cost of $ 43,000 on October 1. The equipment has an estimated residual value of $ 3,000 and an estimated useful life of five years ..
Identify the most obvious economic reason for the persisten : Identify the most obvious economic reason for the persistent depreciation of the peso

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the level of sales required to achieve

What is the level of sales (in units) required to achieve a net income of 15 percent of sales?

  Different tasks and roles you learned about

Reflect on the different tasks and roles you learned about in this course. Identify at least (two) 2 skills you would need to be a project manager and discuss what you can do to develop those skills. Lastly, identify and discuss at least one (1) o..

  What makes for a good investment?

1.What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns.

  Complete the following 5 exercises below in either excel or

complete the following 5 exercises below in either excel or a word document. save the document and submit it in the

  What is the projects mirr

Project K costs $52,125. Its expected cash inflows are $21,000 per year for 8 years, and its WACC is 12%. What is the project's MIRR?

  The tate corporation has annual sales of 47 million the

the tate corporation has annual sales of 47 million. the average collection period is 36 days. what is the average

  When forecasting operating expenses explain the difference

when forecasting operating expenses explain the difference between a fixed cost and a variable

  How many shares will the investor have at the end

An investor who buys 100 shares for $40 a share of stock that pays a per-share dividend of $2 annually signs up for the dividend reinvestment plan. If neither the price of the stock nor the dividend is changed, how many shares will the investor ha..

  Calculate the total cost in usd

Without a forward contract, what is the dollar-cost of the shipment if the spot exchange rate at the time of purchase is $0.75?

  How many shares would you own after the split

A company decalres a 2 for 1 stock split and you own 10,000 shares of stock currently trading at $100 dollars a share. What would be the dollar value and how many shares would you own after the split.

  Prepare an executive level report related to the target

Prepare an executive level report related to the target acquisition company's financial and operational strengths and weaknesses that addresses the acquiring company's internal management team

  What factors are important for pricing options

According to the Black-Scholes option pricing model, what factors are important for pricing options?

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