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 117 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?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
Working Memory Binds Visual Features into a Single Chunk Working Memory Binds Visual Features into a Single Chunk
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
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
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
Video: Anaphylaxis Animation

For a complete list of videos, visit our video library