Statement relevant cash flows

Assignment Help Financial Management
Reference no: EM13907217

In a financial decision, what is meant by the statement “Relevant Cash Flows”? How do you assure cash flows are relevant?

Reference no: EM13907217

Questions Cloud

Highest credit risk to lowest risk the bonds : Rank order from highest credit risk to lowest risk the following bonds, with the same time to maturity, by their yield to maturity: JM Corporate bond with yield of 4.25 percent, IB Corporate bond with yield of 6.49 percent, TC Corporate bond with yie..
What is its depreciation tax shield : ABC transportation has a depreciation expense of $300,000 and has a marginal tax rate of 30%. What is its depreciation tax shield?
About the approximate forward exchange rate : Assume the current U.S. dollar-British spot rate is 0.6134£/$. If the current nominal one-year interest rate in the U.S. is 2.5% and the comparable rate in Britain is 3.5%, what is the approximate forward exchange rate for 360 days?
Compute the percentage growth in net sales : Compute the percentage growth in net sales for each product line from fiscal year 2010 to 2011. Round percents to one decimal.
Statement relevant cash flows : In a financial decision, what is meant by the statement “Relevant Cash Flows”? How do you assure cash flows are relevant?
Price of loans of equivalent risk and maturity increases : A $500,000 loan requires monthly payments for 20 years. The annual interest rate on the loan is 3%. Immediately after the loan has been finalized, the price of loans of equivalent risk and maturity increases by 50 basis points (3.0% to 3.5%). How muc..
What is estimated value per share of your firms stock : Assume that the average firm in your company’s industry is expected to grow at a constant rate of 6% and that its dividend yield is 7%. Your company is about as risky as the average firm in the industry, what is the estimated value per share of your ..
Suppose your firm is considering two mutually exclusive : Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 10 percent. Project A s Cash flow from year 0 to year 3: -1000, 400, 40..
Multinational firm has forecast the euro and dollar rate : A major U.S. multinational firm has forecast the euro/dollar rate to be euro 1.10/$ one year hence, and an exchange rate of $1.40 for the British pound (£) in the same time period. What does this imply the company's expected rate for the euro per pou..

Reviews

Write a Review

Financial Management Questions & Answers

  Describe an optimal inventory policy

Economic Order Quantity. The Trektronics store begins each month with 740 phasers in stock. This stock is depleted each month and reordered. If the carrying cost per phaser is $26 per year and the fixed order cost is $340, what is the total carrying ..

  How many shares must the company sell to the public

A company wants to raise $350 million in a new stock issue. Its investment banker indicates that sale of the new stock will require 20% under pricing an dan 8% spread. if the company’s stock price does not change from its current price of $35 per sha..

  What is the internal rate of return for the proposal

The ABC Company has gathered the following information about the cash flows associated with a capital budgeting opportunity. The Project will cost $10,000,000 to implement, and has a three year estimated economic life. What are the annual net cash fl..

  Expected the inflation rate to average length of mortgage

Assume you are a banker and want a 4% real rate of return on your loans. if you expect that the inflation rate will average about 6% over the next thirty years, what rate should you charge your customers for a thirty year fixed rate mortgage? How wou..

  Calculate cost of goods manufactured and cost of goods sold

Scott Investors, Inc., is considering the purchase of a $360,000 computer with an economic life of five years. The computer will be fully depreciated over five years using the straight-line method. The market value of the computer will be $60,000 in ..

  Interest compounded annually

Park City, Utah’s, Treasure Mountain International School is a public middle school interested in raising money for next year’s Sundance Film Festival. If the school raises $2,989 and invests it for 1 year at 3% interest compounded annually, what is ..

  What is this bonds yield to maturity and its yield to call

McCue Inc.'s bonds currently sell for $1,250. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050. Assume that no costs other than the call premium would be incurred to call and r..

  Net cash flow from operating activity

The Pitt Stop generated net income of $1,250 and paid dividends of $250. Accounts payable fell by $100, accounts receivable increased by $75, inventory increased by $60, depreciation expense was $25, and net fixed assets decreased by $15. There was n..

  What is the operating cash flow in each of the three periods

You are considering investing in a project that is a cost cutting proposal. additional net revenues from the project are expected to equal $83.33 for each of the three years of the project life. The process has an initial cost of $125 and will be dep..

  What are interest rate fundamentals

What are interest rate fundamentals? Explain term structure and risk premiums. How do these concepts come into play in the real world (mortgage rates, bond prices, etc.)?

  What is the required total margin that will make plan

Assume that the firm's Total Asset Turnover will average 1.0 in each of the five years and Equity Financing percentages will remain constant at 50 percent. The firm projects Reported Income Index values to be 0.85 each year.

  Explain the various activities undertaken by the managers

Explain the various activities undertaken by the managers which may result in agency costs to the company. Describe how a listed company may attempt to reduce the agency costs incurred as a result of the management activities described in question 1.

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