A firm with no financial assets or financial obligations generated free cash flow of $8.4 million in
Question:
a. What was the rate of return from investing in the stock of this firm for 2009?
b. What were the earnings for this firm for 2009?
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
a This firm has no financial assets or financial obli...View the full answer
Answered By
Saikumar Ramagiri
Financial accounting:- Journal and ledgers, preparation of trail balance and adjusted trail balance Preparation of income statement, retained earning statement and balance sheet Banks reconciliation statements Financial statement analysis Cash flow statement analysis (both direct and indirect methods) All methods of Depreciations Management Accounting:- Ratios Budgeting control Cash budget and production budget Working capital management Receivable management Costing:- Standard and variance costing Marginal costing and decision making Cost-volume-profit analysis Inventory management (LIFO, FIFO) Preparation and estimation of cost sheet Portfolio management:- Calculation of portfolio standard deviation or risk Calculation of portfolio expected returns CAPM, Beta Financial management:- Time value of money Capital budgeting Cost of capital Leverage analysis and capital structure policies Dividend policy Bond value calculations like YTM, current yield etc International finance:- Derivatives Futures and options Swaps and forwards Business problems Finance problems Education (mention all your degrees, year awarded, Institute/University, field(s) of major): Education Qualification Board/Institution/ University Month/Year of Passing % Secured OPTIONALS/ Major ICWAI(inter) ICWAI inter Pursuing Pursuing - M.com(Finance) Osmania University June 2007 65 Finance & Taxation M B A (Finance) Osmania University Dec 2004 66 Finance & Marketing. B.Com Osmania University June 2002 72 Income Tax, Cost & Mgt, Accountancy, Auditing. Intermediate (XII) Board of Intermediate May 1999 58 Mathematics, Accountancy, Economics. S S C (X) S S C Board. May 1997 74 Mathematics, Social Studies, Science. Tutoring experience: • 10 year experience in online trouble shooting problems related to finance/accountancy. • Since 6 Years working with solution inn as a tutor, I have solved thousands of questions, quick and accuracy Skills (optional): Technical Exposure: MS Office, SQL, Tally, Wings, Focus, Programming with C Financial : Portfolio/Financial Management, Ratio Analysis, Capital Budgeting Stock Valuation & Dividend Policy, Bond Valuations Individual Skills : Proactive Nature, Self Motivative, Clear thought process, Quick problem solving skills, flexible to complex situations. Achievements : 1. I have received an Award certificate from Local Area MLA for the cause of getting 100% marks in Accountancy during my Graduation. 2. I have received a GOLD MEDAL/Scholarship from Home Minister in my MBA for being the “Top Rank student “ of management institute. 3. I received numerous complements and extra pay from various students for trouble shooting their online problems. Other interests/Hobbies (optional): ? Web Surfing ? Sports ? Watching Comics, News channels ? Miniature Collection ? Exploring hidden facts ? Solving riddles and puzzles
4.80+
391+ Reviews
552+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
A firm generated a negative free cash flow of $1,857 million, but the board of directors, understanding that the firm was quite profitable, maintained the dividend of $1.25 per share on the 840...
-
The Insincerity Company expects free cash flow of $4.5 million, $7.3 million, and $7.9 million in the next three fiscal years (the first cash flow being exactly one year from now). After that, free...
-
Mastrade firm has free cash flow of 3,500,000 USD. When the firm was unlevered it had a cost of equity of 9%. Then it went for permanent leverage by borrowing 500,000 USD at 8% interest rate....
-
1) Identify a Major Global Company 2) Provide a brief History of the Company and what it does. 3) Identify their top three (3) Tier 1 Suppliers - Explain what they supply, where they are located and...
-
VacuTech is a high-technology company that manufactures sophisticated instruments for testing microcircuits. Each instrument sells for $3,500; variable manufacturing cost per unit (all cash) equals...
-
Read the paper by M. Massari, F. Roncaglio and L. Zanetti, On the Equivalence between the APV and the WACC Approach in a Growing Leveraged Firm, European Financial Management, Vol. 14, No. 1, 2008,...
-
A business issued a $5,000, 60-day, 12% note to the bank. The amount due at maturity is: A. $4,900 C. $5,100 B. $5,000 D. $5,600 AppendixLO1
-
In the current year, Tanager Corporation (a C corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Tanager had a long-term capital gain of $55,000 and a...
-
On January 1, James Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to James. The equipment cost James $840,000 and has...
-
A fraction nonconforming control chart with n = 400 has the following parameters: UCL = 0.0962; Center line = 0.0500; LCL = 0.0038. (a) Find the width of the control limits in standard deviation...
-
Below are financial statements that have been reformulated using the templates in this chapter. Some items are missing; they are indicated by capital letters. a. Supply the missing numbers using the...
-
At the end of its June 30, 2008, fiscal year, Microsoft Corporation reported $23.7 billion in short-term interest-bearing investments and cash equivalents. The firm had no debt obligations....
-
How does Celebritys product development process compare with the product development organizations suggested in your text? lop1
-
Write out the form of the partial fraction decomposition of the function (see example). Do not determine the numerical values of the coefficients. x3 (a) x + 7x+6 9x+1 (b) (x + 1)3(x + 2) Submit...
-
You desire to make an 80% by weight vinyl acetate to 20% by weight styrene copolymer via free radical, emulsion polymerization. The r 1 and r 2 values for these monomers are 0.01 and 55,...
-
Q1)In a wheel and axle machine the diameters of the wheel and the axle are 450mm and 60mm respectively.The efficiency is 97%(0.97 per unit).When a body having a mass of 40kg is being lifted.Determine...
-
Smith & Chief Ltd. of Sydney, Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements...
-
C. In lab, you measure the x & y components of a possible incompressible flow field as u = 2cxy; and where cand a are constants. v = c(a + x - y) 5. (04 pts) Short answer, what is necessary for the...
-
Why do employee stock options impose a cost on shareholders? Explain.
-
Juanita owns a home in Richardson, TX. She purchases a Homeowners Policy (HO-3) from Farm State Ins. Co. The policy provides $100,000 in liability coverage (coverage E) and $5,000 in Med Pay coverage...
-
Describe how the equilibrium system responds to the change described in each of the following parts. (a) Heat is added to a sample of solid in equilibrium with its vapor at constant pressure. (b)The...
-
Prepare a multiple-step income statement for Jackrabbit, Inc. from the following single-step statement. Net sales ............$1,840,000 Gain on sale of equipment.......15,000 Interest...
-
Income statements for Yarrick Company for the years ending December 31, 2010,2009, and 2008 are shown below. Prepare a common-size income statement and analyze the profitability of thecompany....
-
LA Theatres, Inc. has two distinct revenue sources, ticket and concession revenues. The following information from LA Theatres, Inc. income statements for the past three years is available: (a)...
-
Old MathJax webview i need Compute key financial ratios all financial ratios are required B D 2020 2019 9,169 118,378 18,423 1,839 10,244 10,748 1,648 3,963 11,048 185,460 8,822 97,719 17,417 731...
-
L> Moving to another question will save this response Question 1 Which of the following statements is true? o When corporate governance is strong managers may demand excessive pay O When corporate...
-
Document Malings Review View W Design Layout References ody - 12 - A A A A U. XX A. AD Aalto ABECEDE A AaBbc Acid 2) The Duranceau company has great difficulty controlling its indirect manufacturing...
Study smarter with the SolutionInn App