### Free cash-flow valuations

Assignment Help Accounting Basics
##### Reference no: EM13761434

Free Cash-Flow Valuations

--Create an argument that use of the present value free cash-flow method has a more beneficial economic meaning than earnings-based methods. Provide support for your argument.

--Assess the challenges related to using the present value of the free cash-flow valuation method in practice, suggesting how each of these challenges may be overcome. Provide support for your rationale. [350 words -- 1-2 references]

Negative Cash Flow

--Assess how the free cash-flow method can be used when a company is profitable yet the cash-flow values are expected to be negative over the next five years, indicating the likely impact on the valuation. Provide support for your rationale.

--Assess which cash-flow variables are the most sensitive to change and the likely impact on a firm's valuation. Provide support for your answer. [350 words -- 1-2 references]

#### Theoretic justification for considering all leases

Although only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The pri

#### Reports bond interest expense for some months

On 1/1/09 ABC Company sold \$200,000 of 10% ten-yr bonds. Interst paid semiannually on 6/30 and 12/31. The bonds sold for \$177,000. ABC records interest at the effective rate

#### The urchase price at nominal intrest rate

a new house cost \$178,000. the bank will loan 90% of the urchase price,at nominal intrest rate of 10.75% compounded weekly and monthly payments will be made. We want to pay

#### Determining audition and sampling

What are some ways that auditors can be sure that the sample sizes will be fair enough to provide a look at internal controls, yet comprehensive enough to detect any irregul

#### Determine the net present value for the proposal

Assuming that the desired rate of return is 20%, determine the net present value for the proposal. Use the table of the present value of \$1 presented above. If required, rou

#### How changes affect the break-even point

A company increased the selling price for its product from \$5 tp \$6 per unit when total fixed expenses increased from \$100,000 to \$200,000 and variable exense per unite rema

#### What is the amount of the gross profit

During the current year, merchandise is sold for \$32,800 cash and \$379,500 on account. The cost of the merchandise sold is \$250,000. What is the amount of the gross profit?

#### Calculate the amount of net income

Compute the amount of net income that ABC Company would report inits 2007 income statement after all the above transactions arerecorded and all necessary adjusting entries a