Differentiate between a firm’s operating cash flow and fcf

Assignment Help Finance Basics
Reference no: EM131110816

From a strict financial perspective, define and differentiate between a firm’s operating cash flow (OCF) and its free cash flow (FCF).

Reference no: EM131110816

Questions Cloud

What is the purpose of the cash budget : What is the purpose of the cash budget? What role does the sales forecast play in its preparation?
Which three statements result as part of the short term : Which three statements result as part of the short-term (operating) financial planning process?
Indicate how well the percentage of sales method : Indicate how well the percentage-of-sales method and the aging method accomplish the objectives of the allowance method of accounting for bad debts.
What is the financial planning process : What is the financial planning process? Contrast long-term (strategic) financial plans and short-term (operating) financial plans.
Differentiate between a firm’s operating cash flow and fcf : From a strict financial perspective, define and differentiate between a firm’s operating cash flow (OCF) and its free cash flow (FCF).
What the theoretical justification of the allowance method : What the theoretical justification of the allowance method is as contrasted with the direct write-off method of accounting for bad debts?
Why do we exclude interest expense and taxes from operating : Why do we exclude interest expense and taxes from operating cash flow?
Why is depreciation considered a noncash charge : Why is depreciation (as well as amortization and depletion) considered a noncash charge?
What are the basic problems that occur in the valuation : What are the basic problems that occur in the valuation of accounts receivable?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the operating cycle at telecraft

Telecraft Enterprises carries 46 days of inventory in its stores. Last year Telecraft reported net sales of $1,401,100 and had receivables of $303,600 at the end of the year. What is the operating cycle at Telecraft ?

  What is the value of the option to delay the project

The project's cost and expected annual cash flows would be the same whether the project is delayed or not. The project's WACC is 11.0%. What is the value (in thousands) of the option to delay the project?

  Information about calculating cost of debt

In an effort to raise money, a company sold a bond that now has 20 years of maturity-what component of debt should be used in the WACC calculations?

  Find new value of the portfolio

Suppose you are planning how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 50 percent of the money in GoldFinger.

  Knowledge of the industry and the credit worthiness

1. Factoring require that the bank have a very good knowledge of the industry and the credit worthiness of clients.

  What is the expected return of a portfolio

What is the expected return of a portfolio that consists of 60% Autodesk stock

  What is the gain or loss on the futures contract

Suppose the December CBOT Treasury bond futures contract has a quoted price of 90-18 . If annual interest rates go up by 1.00 percentage point, what is the gain or loss on the futures contract? (Assume a $1,000 par value, and round to the nearest ..

  Explain valuing bond based on the yield to maturity rate

Explain Valuing Bond based on the yield to maturity rate and calculate the price of the bonds at the following years to maturity and fill in the following table

  A 3500 strike european call maturing in 6 months sells

jafee corp. common stock is priced at 36.50 per share. the company just paid its 0.50 quarterly dividend. interest

  Why do some investors prefer high-dividend-paying stocks

why do some investors prefer high-dividend-paying stocks while other investors prefer stocks that pay low or

  Computation of repayment of loan

Suppose you take out a loan of $10,000, repayable by five equal annual installments. The interest rate is 10% per year.

  Foreign currency hedge-existing receivable

Prepare journal entries to record the receivable from the sales transaction and the forward contract on April 1. Prepare journal entries to record collection of the receivable and settlement of the forward contract on May 30

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