A cash flow adequacy ratio of one indicates

Assignment Help Financial Management
Reference no: EM13877969

A cash flow adequacy ratio of one indicates:

The company covered their cash needs without a need for external financing.

The company did not cover their cash needs without a need for external financing.

The company covered their cash needs with a need for external financing.

The company did not cover their cash needs with a need for internal financing.

Reference no: EM13877969

Questions Cloud

Calculate the net income for the firm : A firm reported an ROE of 19 percent. The firm's debt ratio was 45 percent, sales were $12 million, and the capital intensity ratio was 1.1 times. Calculate the net income for the firm.
What is bonds price and annual yeld to maturity : fixed coupon bond , 20 years left until maturity , coupon rate 6% , yield of bond 6.2% , paid semi annual. What is bond's price? fixed coupon bond, 12 years left until maturity , coupon rate 7% , price of bond is $1060.00 , paid semi annually. What i..
Who pays taxes on earnings distributed as dividends : Amy wants to know if inventory is increasing as a percentage of total assets. Which one of these statements most easily provides the information she is seeking? What is the highest marginal rate at which corporate income is taxed? Who pays taxes on e..
Negative position implies receivables exceed payables : Kantorovich Company normally takes 29 days to pay for its average daily credit purchases of $2,400. Its average daily sales are $3,400, and it collects accounts in 24 days. What is its net credit position? Note that a negative position implies receiv..
A cash flow adequacy ratio of one indicates : A cash flow adequacy ratio of one indicates:
Households and nonprofit organizations : Using data from the Z.1 statistical release published by the Board of Governors of the Federal Reserve please answer the questions based on the following data series. Households and nonprofit organizations; home mortgages; liability
Return on assets and return on common shareholders equity : When considering the difference between return on assets (ROA) and return on common shareholders' equity (ROE), Preferred dividends are deducted from the numerator when calculating ROE, but not when calculating ROA.
What was the firms sales to working capital ratio : A firm reported working capital of $5.5 million and fixed assets of $20 million. Its fixed asset turnover was 1.2 times. What was the firm's sales to working capital ratio?
What is the expected return on a portfolio : A stock has a beta of 1.28 and an expected return of 12.6 percent. A risk-free asset currently earns 4.2 percent. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the standard deviation of returns

A stock has the following year end prices and dividends. What are the arithmetic and geometric average annual returns for the stock over this time period? What is the standard deviation of returns (use the arithmetic average)?

  What was your dividend yield on this stock

One year ago, you purchased a stock at a price of $32 a share. Today, you sold the stock and realized a total return of 25 percent. Your capital gain was $6 a share. What was your dividend yield on this stock?

  Balance on student loans

Latoya's balance on student loans is $24,000 today (first day of month). The rate on the loan is 6% NAR with monthly compounding. Latoya would like to pay off the loan in three years. The first payment would be at the end of the present month. What e..

  Closest approximation to real-risk-free rate of interest

The closest approximation to the real, risk-free rate of interest is

  Target stock price in dollars

Fly Away, Inc., has balance sheet equity of $5.6 million. At the same time, the income statement shows net income of $823,200. The company paid dividends of $452,760 and has 200,000 shares of stock outstanding. If the benchmark PE ratio is 23, what i..

  What is the monthly deposit

TV’s R Yours is advertising a deal, in which you buy a flat screen TV for $4,769 (including tax) with one year before you need to pay (no interest is incurred if you pay by the end of the one year). How much would you need to deposit at the end of ea..

  Find the hedge ratio for put option using the data provided

Find the hedge ratio for a put option using the data provided. Use the hedge ratio to show the loss on a portfolio of 200 shares if the portofolio is hedged with put options. The percentage loss on the shares is 2%.

  Calculate the delivery price of the bond

A 20-year 1000 par value bond pays 4% annual coupons. The bond is priced to yield an annual effective rate of 5%. The continuous compounded risk free rate of interest is 4%. Calculate the delivery price of the bond for a three year forward contract w..

  Net working capital of the firm

It also had accounts payables of $51,369, short-term notes payables of $11,417, and accrued taxes of $6,145 and the net working capital of the firm

  Expected dividend and growth in dividends

Messman Manufacturing will issue common stock to the public for $40. The expected dividend and growth in dividends are $3.50 per share and 3%, respectively. If the flotation cost is 9% of the issue's gross proceeds, what is the cost of external equit..

  What if you use the geometric average growth rate

Suppose In a Found Ltd. just issued a dividend of $1.52 per share on its common stock. The company paid dividends of $1.20, $1.26, $1.33, and $1.44 per share in the last four years. If the stock currently sells for $55, what is your best estimate of ..

  Explain mortgage interest on residence

During the past year, she paid $2800 in interest on her car loan, $10,000 in mortgage interest on her residence, and $2500 in property taxes on that same home.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd