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What factors determine the need for cash in the firm and operation?
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What factors determine the need for cash in the firm's operation?
Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).
What factors determine the need for cash in the firm's operations?
Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).
How do free cash flows and the weighted average cost of capital interact to determine a firms value?
Free cash flows represent the cash generated by a firm that is available to be distributed to investors. The weighted average cost of capital (WACC) is the average rate of return required by investors in order to finance the firm's operations. By discounting the free cash flows at the WACC, we can determine the present value of those cash flows, which ultimately determines the firm's value. If the present value of the free cash flows exceeds the firm's invested capital, then the firm is considered to have positive value.
Which element identities the strategic factors that determine the future of a firm?
Environmental Scanning
Explain the factors detemimining working capital requirements of a firm?
The nature of the business, seasonality of production and the production cycles are some of the factors that determine the working capital requirements of a firm.
What are the responsibilities for financial manager?
They should determine how much the firm should invest in assets and how much cash should be raised.
A statement of cash flows allows a financial analyst to determine?
If the firm has sufficient funds to pay liabilities.
Where are some of the characteristics of a firm with a long cash cycle?
. What are some of the characteristics of a firm with a long cash cycle?
What is the liquidity position of the firm?
liquidity position of a firm is the amount of liquid assets ,that is, cash ,bank balance and those assets which can be converted into cash as and when required by the firm which is owned by the firm currently.
What is hypothesis on cash management?
the firm effectively use of cash management
What are the step by step procedures in starting a consultancy firm?
establish a need for starting the consultancy firm gather the legal requirements for operation i.e licences,certificates,tax documents determine the cost of operation come up with a business plan sell yourself/your idea enrich your skills in the area you intend to venture into
What is free cash flows?
Cash resources available for the owners of a firm are known as free cash flows.
