0
What else can I help you with?
How does the capital consumption allowance affect the firms cash flows?
answer the question
An equity issue sold to the firms existing stockholders is called?
A general cash offer
What is baumol cash management?
Baumol cash management refers to a model developed by economist William Baumol that helps businesses manage their cash reserves efficiently. The model suggests a systematic approach to determine the optimal cash balance needed to minimize the total costs associated with holding cash and converting liquid assets into cash. By balancing the transaction costs of converting investments into cash with the opportunity costs of holding cash, firms can optimize their cash management practices to enhance liquidity and reduce costs. This approach is particularly useful for companies with predictable cash flows and expenses.
How would you expect the firms cash balance to respond the following changes Interest Rate Increase?
When interest rates increase, firms generally face higher borrowing costs, which may lead to a reduction in investment and spending. As a result, firms might choose to hold onto more cash as a precautionary measure to manage potential liquidity issues, expecting slower revenue growth. However, the opportunity cost of holding cash also rises due to higher interest rates, which could incentivize firms to invest surplus cash instead. Overall, the response can vary based on the firm's specific circumstances and market conditions.
How are cash flows and the firms stock price related?
In an ideal world, the value placed on a shares value is the current value of all future dividends issues. The greater a firms cash flow, the higher you would expect the dividend to be. Not living in the real world, and not having a crystal ball, the actual share price is determined more by market sentiment and speculation. Thus, there is often no real relationship between a firms cash flow, and its stock price.
What factors determine the need for cash in the firms operations?
Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).
Why firms hold cash?
there are basically three reasons why firms hold cash, namely speculation precaution transaction
Is the importance of financial managers to firms with large cash inflows greater than for firms with smaller cash flows?
true
What is retained cash flow?
Retained cash flow is the cash generated from operation which can be used for reinvestment. So basically it is cash from operation minus all dividend payments.
What is operation cash flow?
Operation Cash Flow Ratio is a financial ratio that is used to identify the percentage of money raised by the company as part of the operation cash flow to the total debt the company owes. Operating cash flow is the cash generated from the operations of the organization after excluding taxes, interest paid, investment income etc.FormulaOCFR = Operation Cash Flow / Total Debts
How does the capital consumption allowance affect the firms cash flows?
answer the question
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).
What is the formula for free cash flow?
FREE CASH FLOW FORMULA IS: CASH GENERATED FROM OPERATION - CASH EXPENDIRTURES IN OPERATIONS
WHAT measure would be most useful in comparing the operating profitability of two firms in different industries?
cash in divided by cash out
What factors should be considered in deciding whether the cost of capital for a foreign affiliate should be higher lower or the same as the cost of capital for a comparable domestic operation?
Key factors include whether the cash flows of the affiliate are closely tied to the state of the local economy or to the world economy, the correlation between the local and domestic economies, and the volatility of the foreign affiliate's cash flows relative to that of the domestic operation. The greater (lesser) each of these factors, the higher(lower) the foreign affiliate's cost of capital relative to that of the domestic operation. In general, the closer these factors are to each other, the closer their costs of capital
What is Operation Cash Flow Ratio?
Operation Cash Flow Ratio is a financial ratio that is used to identify the percentage of money raised by the company as part of the operation cash flow to the total debt the company owes. Operating cash flow is the cash generated from the operations of the organization after excluding taxes, interest paid, investment income etc.FormulaOCFR = Operation Cash Flow / Total Debts
An equity issue sold to the firms existing stockholders is called?
A general cash offer
