Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 22, 2024

1. Explain briefly how a company's change in NWC is negative in a given period. What about net capital spending? Explain. 2. . What is

1. Explain briefly how a company's change in NWC is negative in a given period. What about net capital spending? Explain.

$2. .$ What is free cash flow? Why is free cash flow necessary for the company? Explain briefly.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 A companys change in Net Working Capital NWC can be negative in a given period when the companys current liabilities increase more than its current assets NWC is the difference between a companys cu... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

1st canadian edition

978-0133400694

More Books

Students also viewed these Finance questions

Question

What is globalisation? Discuss arguments in support of globalisation. Contrast these arguments with the central aims of sustainable development in relation to growth, consumption and the natural...

Answered: 1 week ago

Question

★★★★★

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

Answered: 1 week ago

Question

★★★★★

QUIZ... Let D be a poset and let f : D D be a monotone function. (i) Give the definition of the least pre-fixed point, fix (f), of f. Show that fix (f) is a fixed point of f. [5 marks] (ii) Show that...

Answered: 1 week ago

Question

★★★★★

Suppose that for a sample of n = 11 measurements, we find that n = 72 and s = 5. Assuming normality, compute confidence intervals for the population mean with the following levels of confidence: a....

Answered: 1 week ago

Question

★★★★★

In the Winona Wildcats study presented in Chapter 14 (question 17), Pete Thames, the team's general manager, has decided to use a stratified sample. One sample group includes only those who attended...

Answered: 1 week ago

Question

★★★★★

Rank the following types of sales jobs by total earnings, showing which type you feel should have the highest level of compensation, which is second, and so on. Justify your rankings. a) Missionary...

Answered: 1 week ago

Question

★★★★★

Assume that X is a nonnegative random variable having distribution function F. Arguing as in the proof of Proposition 6.7, show that the moment of order r of X (around zero) can be expressed in the...

Answered: 1 week ago

Question

★★★★★

Congratulations! You have won a state lottery. The state lottery offers you the following (after- tax) payout options: Option # 1: $ 15,000,000 after five years Option # 2: $ 2,150,000 per year for...

Answered: 1 week ago

Question

★★★★★

Consider two bonds, Bond C and Bond D, both with a yield to maturity of 9.5 percent and with 5 years to maturity. These are standard bonds with semi-annual coupon payments. Bond C has a coupon rate...

Answered: 1 week ago

Question

★★★★★

This program will not require any IF statements, loops, or custom classes. Instead, it will check inputted data for two kinds of mistakes: Wrong data type (entering text instead of numbers), and math...

Answered: 1 week ago

Question

★★★★★

Show all workings/reasonings. 2. Testing for COVID-19 is continuously ongoing throughout Newfoundland & Labrador. The following represents the number of tests administered in the last 45 days by a...

Answered: 1 week ago

Question

★★★★★

10 Which of the following is NOT a disadvantage of virtual integration in supply chains? 1 point Often variations in the IT capabilities and existing level of infrastructure across supply chain...

Answered: 1 week ago

Question

★★★★★

ACTIVITY 3: PREPARE ME Below are the Income Statement and Balance Sheet of Hobert Supply and Services. Using these data, prepare the company's Statement of Changes in Equity. Herbert Supply and...

Answered: 1 week ago

Question

★★★★★

A data professional works on a financial audit. During the verification process, they keep in mind the big picture view of confirming that the company's financial statements comply with accounting...

Answered: 1 week ago

Question

★★★★★

Predict the boiling heat-transfer coefficient for water under pressure boiling at 250 F for a horizontal surface of 78-in.-thick stainless steel having a k of 9.4 btu/h . ft . F. The heating medium...

Answered: 1 week ago

Question

★★★★★

2. Given the following pseudocode, which values will the variables a, b, c and d have after the execution of the algorithm?. Write the results separated by a blank space. Example: if the result at...

Answered: 1 week ago

Question

★★★★★

What is the price of a 20 year, $1000 par value bond that was issued 2 years ago if it has an 8% annual coupon rate paid semiannually and the yield to maturity is 7%? A. $1083 B. $1092 C. $1099 D....

Answered: 1 week ago

Question

★★★★★

Describe the Operations (+,,*,/) that can cause negligible addition (NA), error magnification (EM), or subtractive cancellation (SC) in calculating ?((x^2)+1) - x . Give the range of where they might...

Answered: 1 week ago

Question

★★★★★

What are the main limitations of the dividend-discount model?

Answered: 1 week ago

Question

★★★★★

What are the reasons most often cited for a takeover?

Answered: 1 week ago

Question

★★★★★

Why do different companies have different WACCs?

Answered: 1 week ago

Question

★★★★★

New method of estimating rainfall. Accurate measurements of rainfall are critical for many hydrological and meteorological projects. Two standard methods of monitoring rainfall use rain gauges and...

Answered: 1 week ago

Question

★★★★★

Feeding habits of fish. Refer to the Brain and Behavior Evolution (Apr. 2000) study of the feeding behavior of black-bream fish, presented in Exercise 2.162 (p. 124). Recall that the zoologists...

Answered: 1 week ago

Question

★★★★★

English as a second language reading ability. What are the factors that allow a native Spanish-speaking person to understand and read English? A study published in the Bilingual Research Journal...

Answered: 1 week ago

Previous Question Next Question