Question

A company can increase its free cash flows by ________. none of these choices are correct...

A company can increase its free cash flows by ________. none of these choices are correct increasing its effective tax rate decreasing the amount of net operating profit after tax increasing investments in receivables, inventories, and fixed assets decreasing investments in receivables, inventories, and fixed assets

none of these choices are correct

increasing its effective tax rate

decreasing the amount of net operating profit after tax

increasing investments in receivables, inventories, and fixed assets

decreasing investments in receivables, inventories, and fixed assets

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Free Cash flows are the cash flows remaining after subtracting all payments and capital expenditures.

A company can increase its free cash flows by

decreasing investments in receivables, inventories, and fixed assets

Increasing investment, decreasing profit and increasing tax rate will all lead to a reduction in cash flows

decreasing investments in receivables, inventories, and fixed assets will lead to release of cash tied up in these and ultimately, will increase 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
A firm can increase its Free Cash Flows to the Firm (FCFF) by doing which of...
A firm can increase its Free Cash Flows to the Firm (FCFF) by doing which of the following? Select one: a. Decreasing its Net Working Capital. b. Maintaining a steady level of Earnings Before Interest and Taxes (EBIT). c. Decreasing the level of Earnings Before Interest and Taxes (EBIT). d. Increasing its Capital Expenditures. e. Decreasing its debt levels
Which of the following is NOT a feature of individual taxation? Group of answer choices Individuals...
Which of the following is NOT a feature of individual taxation? Group of answer choices Individuals pay taxes on wages and salaries, on investment income, and on the profits of proprietorships and partnerships. Individuals face progressive tax rates. Long-term capital gains are taxed at a lower rate than ordinary income. Short-term capital gains are taxed at the same rate as ordinary income. Interest on both corporate and municipal bonds is subject to Federal taxation. Flag this Question Question 82 pts...
Elkin Company reported the following in its Statement of cash Flows for 2014: Cash Flows from...
Elkin Company reported the following in its Statement of cash Flows for 2014: Cash Flows from operations   ($35,000) Cash Flows from investing activities   ($20,000) Cash Flows from financing activities   +$115,000 Net increase in cash   +$60,000 Which of the following is a possible description of the company’s results? Group of answer choices The company issued bonds to generate funds for its operations and investments in stock The company sold Investments in stock and Treasury Stock to fund its operations The company...
Free cash flows are important variables in calculating the: Group of answer choices projected return on...
Free cash flows are important variables in calculating the: Group of answer choices projected return on the firm's total assets depreciation expense projected annual fixed expenses net present value
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...
(Calculating operating cash​ flows)  The Heritage Farm Implement Company is considering an investment that is expected...
(Calculating operating cash​ flows)  The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of ​$2,700,000 per year. The project will also involve annual cash expenses​ (including both fixed and variable​ costs) of ​$1,050,000​, while increasing depreciation by ​$420,000 per year. If the​ firm's tax rate is 36 ​percent, what is the​ project's estimated net operating profit after​ taxes? What is the​ project's annual operating cash​ flow?
Jackson Company gathered the following data to prepare its 20X7 statement of cash flows: Profit $40,000...
Jackson Company gathered the following data to prepare its 20X7 statement of cash flows: Profit $40,000 Depreciation expense 5,000 Trade receivables decrease 3,000 Wages payable increase 4,000 Amortization of patent 1,000 Income tax payable decrease 2,000 Based only on the above data, the net cash inflow from operating activities during 20X7 was which of the following? A - $51,000. B - $53,000. C - $45,000. D - $43,000.
The XYZ Company has a historical growth in its free cash flows of 4% with little...
The XYZ Company has a historical growth in its free cash flows of 4% with little variability. With the addition of a new plant and equipment, however, you expect that free cash flows will grow 7% in year 1, 5% in year 2, and 5% thereafter. The firm’s last free cash flow was $175,000. The firm has a required rate of return of 10%. The book value of operating assets is $1,000,000. The market value of non-operating assets is $900,000....
A project will increase revenues by $45,000 but will increase operating expenses by $15,000 and increase...
A project will increase revenues by $45,000 but will increase operating expenses by $15,000 and increase depreciation by $5,000. Assume that the tax rate is 30%. The net cash flows is____. An asset that has a book of 6,500 could be sold for $8,000 at the end of the project life. At the beginning of the project the company invested $3,500 in net working capital. The tax rate is 40%. The net salvage value is___. Financial analysts focus on ____...
What are the free cash flows of a firm with revenues of $600 million, net profit...
What are the free cash flows of a firm with revenues of $600 million, net profit margin of 55%, operating profit margin of 20%, tax rate of 26%, reinvestment rate of 40%, and dividend payout rate of 5%?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT