This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Net Income60,000+ Depreciation+6,000- Capital Expenditures-7,000- Increases in Working Capital ... (Read 100 times)

Cooldude101

  • Hero Member
  • *****
  • Posts: 557
on: Jul 9, 2019
Net Income60,000
+ Depreciation+6,000
- Capital Expenditures-7,000
- Increases in Working Capital -2,000
= Free Cash Flow 57,000

Vega Music's projected net income and free cash flows are given above in thousands of dollars. Vega expects that their net income and increases in net working capital to increase by 5% per year. If Vega were able to reduce its annual increase in working capital by 10% without affecting any other part of the business adversely, what would be the effect of this reduction on Vega's value, given a cost of capital of 13%?
◦ an increase of $2,500,000
◦ an increase of $1,370,000
◦ an increase of $500,000
◦ an increase of $3,800,000
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Cooldude101 on Jul 9, 2019

xoxo123

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 60% of students answer this correctly


Cooldude101

  • Hero Member
  • *****
  • Posts: 557
Reply #2 on: Jul 9, 2019
Excellent


xoxo123

  • Sr. Member
  • ****
  • Posts: 335
Reply #3 on: Jul 9, 2019
Great! Please up vote :D


« previous next »
 

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Atmospheric pressure decreases as altitude increases. Atmospheric pressure decreases as altitude increases.
Cross-sectional data showing that the amount of effort spent on personal health care increases with Cross-sectional data showing that the amount of effort spent on personal health care increases with
John Lennon - Working Class Hero John Lennon - Working Class Hero
Working Memory Binds Visual Features into a Single Chunk Working Memory Binds Visual Features into a Single Chunk
Working with the feet Working with the feet
Working and Living and Playing in the City Dump of Phnom Penh, Cambodia Working and Living and Playing in the City Dump of Phnom Penh, Cambodia
Video: Arthritis

For a complete list of videos, visit our video library