Cash flow helps to overlook the company for the progress, ability to meet the creditors and debtors, growth, actual cash position as it is the basis of financial operations and also help to internal financial management. Having too much cash in hand id not a good credibility for any company on the other side positive cash flow maintain is really important for the cash flow. It is really necessary for the individual when they merged with another company or individual as they have to think over more than one entity. At the same time challenging as they have to think employees, resources and maintaining the positive cash flow. Discounted Cash Flow helps to find out the intrinsic value of the firm. By overviewing the DCF a company can forecast the expected cash flow and eliminating the subjective accounting policies and window dressing involved in reported earnings. In merger and acquisition, it is important to know about the DCF because it will determine the value of the firm with its expected value. When a company decide whether they should invest on the other company or not they think they should invest in certain project or purchase new equipment using WACC as discount rate when evaluating the DCF.The discounted cash flow formula is equal to the sum of the cash flow in each period divided by one plus the discount rate or WACC raised to the power of the period time. We can talk about the most recent merger Verizon and Goldman. Verizon shares have feared better than the overall market during the coronavirus pandemic, as investors and analyst were favorable with the stable conditions. But it had conditions with dropped 12% since the S&P 500 index peaked Feb 19 while the index itself has plunged 20%. Goldman added Verizon to its conviction buy list and said it thinks the company offers investors an attractive combination of risk and return due to its stable wireless business among other things. So we can say that they did the consistent cash flow valuation which encourage the shareholder and other investors to buy and invest.

DO you agree with above statement ? why or why not ? write 150-200 words.

I think one of the most important benefits of using the analysis of cash flow is the ability in business when a company must run a report cash flow, that way one observes company change in cash of different activities that increases or decrease the balance sheet accounts. In other words, in an analysis of cash flow we can compare the purchaser fully default with overdue sales, that way we can see how we can spend money in the company and how it is receiving during the month, looking at its liquids and solvency exit in the company. Additionally, it provides companies can use their values and measure the risk of evasion of payment. One of the cash flow analysis methods is discounted cash flow analysis (DCF). This analysis is an estimated one that an investor makes to determine the future cash flow, so the investor decides if it should make a discount rate. For example, when evaluating new equipment for DCF to use WACC as the discount rate, if the sum of the discounted cash flow gets a value and the initial investment is subtracted and this is the Net Present Value (NPV). If this NPV is positive, the project is worth it and it is negative, the cost of the investment is not worth it. The future variety of cash flow is due to factors such as market demand.

Do you agree with above statement? why or why not ? please wrtie 150-200 words.

can someone answer this plz. thank you.