1. Explain briefly how a company's change in NWC is negative in a given period. What about...

Fantastic news! We've Found the answer you've been seeking!

Question:

1. Explain briefly how a company's change in NWC is negative in a given period. What about net capital spending? Explain.

$2. .$ What is free cash flow? Why is free cash flow necessary for the company? Explain briefly.

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

See More Books

Posted Date: Apr 22, 2024 11:41 AM

See More Questions

What is globalisation? Discuss arguments in support of globalisation. Contrast these arguments with the central aims of sustainable development in relation to growth, consumption and the natural...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
QUIZ... Let D be a poset and let f : D D be a monotone function. (i) Give the definition of the least pre-fixed point, fix (f), of f. Show that fix (f) is a fixed point of f. [5 marks] (ii) Show that...
Suppose that for a sample of n = 11 measurements, we find that n = 72 and s = 5. Assuming normality, compute confidence intervals for the population mean with the following levels of confidence: a....
A poll of just over 1,000 Californians selected by an area sampling plan were asked early in Governor Jerry Brown's tenure whether they felt that Governor Brown was doing a good, fair, or poor job as...
Produce graphs of f that reveal all the important aspects of the curve. In particular, you should use graphs of f' and f" to estimate the intervals of increase and decrease, extreme values, intervals...
Buttercup Corporation issued 300 shares of $10 par value common stock for $4,500. Prepare Buttercups journal entry.
An object travels from A to B in 2.0 s and from B to C in 3.0 s as shown in Fig. 1. B 3.0m in 2.05. 1.5m in 1.05 3.0 m A 3.0 m Fig. 1 3.0 m 3.0m in 3.05 1.0 min 1.05. What is the magnitude of the...
In reviewing the case study on British Airways, it is important to consider the full 10-year period described in the case study (19801990). British Airways transformed itself from an organization of...
8. Create the Lewis dot structures for each of the following molecules: 3+7(3)=24 A) AICI 3 :ci:AI : Ci: :C1: C) CFH3 E) NI3 G) CH4 B) SO32 with resonance D) NO F) PO4 H) Bromine (careful, this isn't...
Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Direct materials cost per unit Direct labor cost per unit Sales...
You have received an award of $25,000 to improve financial literacy in New York State. In order for you to keep the money, you are required to research and make a paper on the purchase of stock you...
A shoe store is offering a series of markdowns for its customers due to its need for quick cash. The shoe store is offering the markdowns in the following order: 35%, 20%, and 10%. What would be the...
Compare the accounting income with economic income and what difference both can have in appraising the production project with reference to the attached case Sorenzyme is a rapidly growing biotech...
1. The Most Esteemed Professor Mullen's company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month, 1,000 pounds of direct materials...
Which provision could best be justified as encouraging small business? a. Ordinary loss allowed on $ 1244 stuck. b. Percentage depletion. c. Domestic production activates deductions. d. Interest...
20 East 67th Street Associates LLC (Landlord) is the owner of a seven-story residential property located at 20 East 67th Street in Manhattan, New York (the Property). On January 2, 2019, Emily Jerome...
Norman Eastwood owns and lives in a single-family home with his wife (the Property). The Property is located in the Willow Bend Lakes Community in Plano, Texas. The Willow Bend Lakes Community is...
A landlord appeals and a tenant cross-appeals a district court ruling affirming in part and reversing in part a small claims court decision in a residential landlordtenant dispute. This is a case...

1. Explain briefly how a company's change in NWC is negative in a given period. What about...

Question:

Expert Answer:

1 A companys change in Net Working Capital NWC can be negative in a given period when the companys current liabilities increase more than its current assets NWC is the difference between a companys cu... View the full answer

Fundamentals of Corporate Finance

Students also viewed these finance questions