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 116 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?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

The number of words correctly completed in the New York Times crossword puzzle increases with age ... The number of words correctly completed in the New York Times crossword puzzle increases with age ...
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
The areas in which reading-associated increases in activity were observed in the fMRI study of ... The areas in which reading-associated increases in activity were observed in the fMRI study of ...
Capital-Biased Technological Change Capital-Biased Technological Change
Share of Human Capital in Wages in Developing Countries Share of Human Capital in Wages in Developing Countries
Polyploidy increases fruit size Polyploidy increases fruit size
Video: Buffers definition and the role of buffer in the body

For a complete list of videos, visit our video library