Question

True or False. Based on the image below, Cookie Monster is the shareholder of Cookie Management...

  1. True or False. Based on the image below, Cookie Monster is the shareholder of Cookie Management Company (France), and he is also the shareholder and owner of Sub 1 (Chocolate Chip Manufacturing Facility (Germany)).   
    1. True.
    2. False.
  2. True or False. We discussed in class the difference between Free-Cash-Flows Based Valuation model of a business and Dividends-Based Valuation Model. Free-Cash-Flow Based Valuation was looking at the cash that is “free” for the company after looking at the flow of cash into the company versus the flow of cash out of the business. True or False – Free Cash Flow valuation results in a higher valuation.   
  1. True.
  2. False.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Image is not available.So Answer for question 1 cannot be arrived at

For Question 2 Answer is True.

Free cash flow is calculated after taking all inflows of cash and subtracting all outflows of cash from it.and the balance that is available for the share holders are free cash flows.Dividend is a percentage arrived based on availability of free cash flows.Though Dividend is paid on each share the quantum of dividend is fixed based on free cash flows that company could generate over the year and also using some of accumulated reserves from past years

Free Cash flow based valuation results in higher valuation as compared to dividend based valuation is just because dividend is part of free cash flows.Dividend is just a percentage arrived based on the availability of free cash flows

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
These statements are true of false? Explain. 1) In DCF valuation, a company can increase its...
These statements are true of false? Explain. 1) In DCF valuation, a company can increase its return on equity (ROE) by increasing its leverage ratio if and only if its return on capital (ROC) exceeds its after-tax cost of debt (rd x (1 - Tc)). (Assume all other inputs are fixed.) 2) In the context of the dividend discount model (DDM), a company can always increase its intrinsic equity value by increasing its dividend payout ratio if and only if...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
Analysis: This section should include the issue register as a bare minimum, but may include also...
Analysis: This section should include the issue register as a bare minimum, but may include also why-why diagrams, a Pareto chart, a waste table and/or value-added analysis table. Flow analysis or simulation of this case study might be possible but might require making a lot of assumptions given the provided data. The first part of the project: Introduction    Walmart has continued to retain the top position on the Fortune 500 list for a consecutive fifth year. The brand has...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events that took place at Enron and how the situation could have been dealt with differently to prevent further damage? THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies,...
In February 2012, the Pepsi Next product was launched into the US market. This case study...
In February 2012, the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. Pepsi Next Case Study Introduction Pepsi Next was launched by PepsiCo into the US market in February 2012, and has since been rolled out to various international markets (for instance, it was launched in Australia in September 2012). The new product...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT