a) calculate the firm's operating cycle and cash conversion cycle. b) calculate the firms daily cash operating expenditure. How much in resources must be invested to support its cahs conversion cycle?
(b) Calculate the firm's operating cycle (OC). (c) Calculate the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days. (a) Calculate the firm's cash conversion cycle (CCC).
a) Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle.
a) calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle.
FCF = Cash flow from operations - Capital expenditure - dividend = 215,000-110,000-60,000 = 45,000 The solution explains how to calculate the free cash flow
Dividend/Capitalization rate =.2/.10= $2 per share New shares to be issued= Requirement of funds/2.5= 4million /2= 2 million shares Requirement of funds= Capital Expenditure- Operating cash inflow= 9-5=$4 million This provides the steps to calculate
In this we add depreciation and subtract the capital expenditure. Since depreciation is equal to the capital expenditure, the PAT is equal to the free cash flow.
Item Beginning Ending Inventory $8,257.00 $10,432.00 Accts Receivable $5,275.00 $5,963.00 Accts Payable $7,685.00 $7,900.00 Net Sales $65,327.00 Cost of goods sold $51,284.00 Calculate the operating and cash cycles.
(use a 360 day year and remember that first, you have to calculate the daily expenditure.)
capital Free cash flow is expected to grow by 6% per year Cost of equity is 14% WACC is 10% Market value of debt is $3 billion The company has 200 million shares of common stock outstanding Calculate Free cash flow Free cash flow= After