Question
Can someone please help me answer the following questions? Thumbs up Guaranteed for best answer Stockholders are principals and managers are their agents. True False
Can someone please help me answer the following questions? Thumbs up Guaranteed for best answer
Stockholders are principals and managers are their agents.
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A discount bond with a par value of $1,000 and a 6% coupon rate, paid annually must have a yield to maturity (YTM) of less than 6%.
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Investors value $100 received five years in the future less than $100 received today.
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Compounding is the process of finding the present value of a single cash flow or series of cash flows.
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Shareholder of corporations enjoy limited liability.
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Which of the following will directly affect the firm's free cash flow (FCF) but will not directly and immediately affect its net income? [List ALL that apply]
A. Proceeds from newly issued debt. | |
B.The firm's purchasing department negotiates more favorable payment terms with its suppliers. | |
C. Accruals. | |
D. Capital expenditure (CAPEX). | |
E. A customer deposit for goods to be produced and delivered next year. | |
F. Depreciation. | |
G. Interest expense. | |
H. The firm's stock price increased 5% in one day. | |
I. Corporation taxes. | |
J. Increase in working capital. |
Which of the following will immediately and directly affect the firm's net income but not its free cash flow (FCF)? [List ALL that apply]
A. Depreciation. | |
B. Proceeds from newly issued debt. | |
C. A customer deposit for goods to be produced and delivered next year. | |
D. Accruals. | |
E. Corporation taxes. | |
F. Interest expense. | |
G. The firm's stock price increased 5% in one day. | |
H. Amortization. | |
I. Increases in working capital. | |
J.The firm's purchasing department negotiates more favorable payment terms with its suppliers. |
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