A firm borrowed $2 million and paid 10 percent interest this year. It also paid a dividend of $1 per share on 500,000 shares outstanding. What is the firm’s cash flow from financing?
Answer to relevant QuestionsIn year 1, a firm had cash and cash equivalents of $100,000, accounts receivable of $25,000, and inventories of $13,000. In year 2, it had cash and cash equivalents of $80,000, accounts receivable of $20,000, and inventories ...What is the apparent tax rate (tax paid as a percentage of net income) for firms A and B in Practice Problem 49?Kash Kow Inc. pays out all its after-tax earnings to shareholders in the form of dividends. Suppose that in 2012 the company earned $1 per share before tax. Corporate income tax was paid at a rate of 25 percent. For a ...Corine’s Candies Inc. paid dividends of $1.2 million during 2012. However, the company needed extra cash to open new stores, so it issued $1.3 million in new stock. What was Corine’s cash flow from financing in 2012?We can calculate cash flow from operations (CFO) as net income + non-cash expenses + change in working capital. In year 2, the change in working capital for Finns’ Fridges was −$25. Find the CFO and use this figure to ...
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