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PLEASE USE EQUATIONS Calculate days payable outstanding using values from the financial statements. The firm is trying to increase free-cash-flow by improving their days payable
PLEASE USE EQUATIONS
Calculate days payable outstanding using values from the financial statements. The firm is trying to increase free-cash-flow by improving their days payable outstanding. Assume that costs stay constant, do you need to increase or decrease days payable outstanding (no calculations required)? type here The company decides to park the freed up cash in short-term investments. What would be the effect on ROE (return on equity) and why? Use the definition of the ratio, given to the right, and how the change in short-term investments would trickle through. (no calculations required) ROE=totalequitynetincome type here Do the same analysis for paying an extraordinary dividend with the freed up cash. Again, no calculations, walk me through the trickle down effect using the ratio defition to the right. type here Calculate days payable outstanding using values from the financial statements. The firm is trying to increase free-cash-flow by improving their days payable outstanding. Assume that costs stay constant, do you need to increase or decrease days payable outstanding (no calculations required)? type here The company decides to park the freed up cash in short-term investments. What would be the effect on ROE (return on equity) and why? Use the definition of the ratio, given to the right, and how the change in short-term investments would trickle through. (no calculations required) ROE=totalequitynetincome type here Do the same analysis for paying an extraordinary dividend with the freed up cash. Again, no calculations, walk me through the trickle down effect using the ratio defition to the right. type hereStep by Step Solution
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