What are the reasons for a firm having lower cash from operations than working capital from operations? What are the possible interpretations of these reasons?
Answer to relevant QuestionsABC Company recognizes revenue at the point of shipment. Management decides to increase sales for the current quarter by filling all customer orders. Explain what impact this decision will have on the following:Days’ ...John Right, an analyst with Stock Pickers Inc., claims: “It is not worth my time to develop detailed forecasts of sales growth, profit margins, et cetera, to make earnings projections. I can be almost as accurate, at ...Explain why terminal values in accounting-based valuation are significantly lower than those for DCF valuation.How would the forecasts in Table 8-2 change if TJX were to maintain a sales growth rate of 10 percent per year from 2011 to 2020 (and all the other assumptions are kept unchanged)?Nancy Smith says she is uncomfortable making the assumption that TJX’s dividend payout will vary from year to year. If she makes a constant dividend payout assumption, what changes does she have to make in her other ...
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